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a. What is the bond's yield to maturity? Round your answer to two decimal places. b. What is the bond's current yield? Round your answer

a. What is the bond's yield to maturity? Round your answer to two decimal places.

b. What is the bond's current yield? Round your answer to two decimal places.

c. What is the bond's capital gain or loss yield? Round your answer to two decimal places. Use a minus sign to enter a negative value, if any.

d. What is the bond's yield to call? Round your answer to two decimal places.

e. How would the price of the bond be affected by a change in the going market interest rate? (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. This is an oversimplification, but assume it for purposes of this problem.) Round your answers to the nearest cent. DETAIL see screenshot below! Please provide with detail formulas.

f. Now assume the date is October 25, 2020. Assume further that a 13%, 10-year bond was issued on July 1, 2020, pays interest semiannually (on January 1 and July 1), and sells for $1,080. Again, it may be called in 4 years from the date of issue at a call price of $1,050. Use your spreadsheet to find the bond's yield. Round your answers to two decimal places. DETAIL see screenshot below! Please provide with detail formulas.

image text in transcribedimage text in transcribed

X Download spreadsheet Ch04 P24 Build a Model-49128f.xIsx a. What is the bond's yield to maturity? Round your answer to two decimal places. % b. What is the bond's current yield? Round your answer to two decimal places. % c. What is the bond's capital gain or loss yield? Round your answer to two decimal places. Use a minus sign to enter a negative value, if any. % d. What is the bond's yield to call? Round your answer to two decimal places. % cent. called in 4 years from the date of issue at a call price of $1,050. Use your spreadsheet to find the bond's yield. Round your answers to two decimal places. Yield to maturity: % Yield to call: %

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