A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called in 10 years at a call price of $1,100. The bond sells for $1,200.

e. How would the price of the bond be affected by a change in the going market interest rates?

Please show work ( by adding numbers or CELL with formula if needed). Thank you, will rate.

L M N I e a A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called in 10 years at a call price of $1,100. The bond sells for $1,200. Basic Input Data: Years to maturity: Periods per year: Periods to maturity: Coupon rate: Par value: Periodic payment: Current price Call price: Years till callable: Periods till callable: $1,100 $88 $1,200 $1,100 17 18 19 20 F M G H I a. What is the bond's yield to maturity? Peridodic YTM = Annualized Nominal YTM = Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. b. What is the bond's current yield? / Price Current yield = Ann. Coupon Current yield = Current yield = Hint: Write formula in words. Hint: Cellformulas should refer to Input Section (Answer) d. What is the bond's yield to call? Here we can again use the Rate function, but with data related to the call. Peridodic YTC = Annualized Nominal YTC = This is a nominal rate, not the effective rate. Nominal rates are generally quoted