5 Bond YTM and YTC Assume today is March 1st, 2020 and is the settlement date for the two following bonds: 7 Seasons Enterprises has bonds outstanding that mature on 3/30/2049. These bonds have a 11% coupon rate, with coupons paid semi-annually, and currently sell for 135%% of par. The bond is callable on 3/30/2039 for 105% of par value. Turcell Inc. has bonds outstanding that mature on 3/30/2049 as well. These bonds have a 6% coupon rate, with coupons paid semi-annually, and currently sell for 119% of par. The bond is callable on 3/30/2029 for 110% of par value Calculate the yield-to-maturity (YTM) and the yield-to-call (YTC) for each bond. 10 11 12 Answers Maturity Date Face Value Settlement Date Coupon Seasons Turcell 3/1/2020 3/1/2020 3/30/2049 3/30/2049 11% 6% 13 Frequency 14 Price 15 Call Date 3/30/2039 3/30/2039 16 Call Price DEAR 19 YTM YTC Illustrate bond convexity Use the following information on an aramal bond and Data Table to illustrate bond convexity by changing the YTM from 0% to 30% with incremental of 1% and years to maturity of 10, 20, 30, 40 a Provide a graphing illustration of the bond convexity. Years to Maturity Copos Rate Starting YTM P Vale 9 14 Frequency Vale 35 16 41 41 25 11% 11% 1,000.00 6 6 6 6 6 6 6 6 6 6 6 10 Years till maturity 20 Data Talde 30 40 to fill this fload Ce appear i Chart Chart L 10 year 20 year 30 year 40 year 50 year Bond YTM and YTC P Assume today is March 1st, 2020 and is the settlement date for the two following bonds Seasons Enterprises has bonds outstanding that mature on 3/30/2049. These bonds have a 11% coupon rate, with coupons paid semi-annually, and currently sell for 135%% of par. The bond is callable on 3/30/2039 for 105% of par value Turcell Inc. has bonds outstanding that mature on 3/30/2019 as well. These bonds have a 6% coupon rate, with coupons paid semi-annually, and currently sell for 119% of par. The bond is callable on 3/30/2029 for 110% of par value. Calculate the yield-to-tuaturity (YTM) and the yield-to-call (YTC) for each bond. T 6 Seasons Turcell Answers Settlement Date 3/1/2020 3/1/2020 10 Maturity Date 3/30/2049 3/30/2049 11 Coupon 11% 6% 12 Face Value 9 Frequency 14 Price Call Date 3/30/2039 3/30/2039 Call Price 17 20 YTM YTC General Instruction Quit Commen trate bond convexity the following information on an annual bond and Data Table to illustrate bond convexity by changing the YTM from 0% to 30% with incremental of 1% and years to maturity of 10, 20, 30, 40 and vide a graphing illustration of the bond convexity to Marity Rate ting YTM Vale picy 25 11% 11% 1,000.00 9732333333333 10 Years till maturity 20 30 40 Buta Table t be med to fill this Cental instruction Quiz Common Functions TVM Amortation Bead Co appeari Chart Chart L appropel 10-year 20-y 30 year 40-year 5 year