52 BOND VALUATIONS 1. What is the value of a 3-year Bond that pays 6% annual coupon semi-annually, if the Bond's yield is 5% ? \begin{tabular}{|l|l|l|l|l|l|l|l|r|r|r|r|r|r|r|} \hline 55 & Years: & & 0.5 & 1 & 1.5 & & 2 & 2.5 & & 3 & \\ \hline 57 & Cash Flows: & & & & & & & \\ \hline 58 & Discounted Cash Flows: & & & & & & \\ \hline \end{tabular} 2. Calculate Rate Spreads between 2-yr, 10-yr \& 30yr Bonds from the data in the Interest Rates page. Build a Chart of changes in those 3 spreads over time. 52 BOND VALUATIONS 1. What is the value of a 3-year Bond that pays 6% annual coupon semi-annually, if the Bond's yield is 5% ? \begin{tabular}{|l|l|l|l|l|l|l|l|r|r|r|r|r|r|r|} \hline 55 & Years: & & 0.5 & 1 & 1.5 & & 2 & 2.5 & & 3 & \\ \hline 57 & Cash Flows: & & & & & & & \\ \hline 58 & Discounted Cash Flows: & & & & & & \\ \hline \end{tabular} 2. Calculate Rate Spreads between 2-yr, 10-yr \& 30yr Bonds from the data in the Interest Rates page. Build a Chart of changes in those 3 spreads over time