Question
a) A bond has 15 years left to maturity. The annual coupon rate is 9%, and face value is $1,000. If the YTM = 12%,
a)
A bond has 15 years left to maturity. Theannual couponrate is 9%, and face value is $1,000. If the YTM = 12%, what is the bond price?
b) Anannual couponbond has coupon payment = $500, YTM = 8%, and maturity = 5 years.If the price ofthe bond is $9,400, what must be the face value?
c)A bond has 15 years left to maturity. Thesemi-annual couponrate is 9%, and face value is $1,000. If the YTM = 12%, what is the bond price?
for all 3 parts please show all calculations via excel, and how you got them in excel (formulas). thanks.
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
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