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Amount of liability: $ 90,000,000 Current YTM: 7.5% Answers to B and C in this section: Coupon payment Original YTM YTM decrease YTM increase Reinvestment
| Amount of liability: | $ 90,000,000 | |
| Current YTM: | 7.5% | |
| Answers to B and C in this section: | |||||
| Coupon payment | |||||
| Original YTM | YTM decrease | YTM increase | |||
| Reinvestment YTM: | 7.50% | ||||
| Coupon rate: | 7.50% | ||||
| Year | Six-month period | Coupon payment | Value of reinvested coupons at Year 5 at original YTM | Value of reinvested coupons at Year 5 with YTM decrease | Value of reinvested coupons at Year 5 with YTM increase |
| 1 | 1 | ||||
| 2 | |||||
| 2 | 3 | ||||
| 4 | |||||
| 3 | 5 | ||||
| 6 | |||||
| 4 | 7 | ||||
| 8 | |||||
| 5 | 9 | ||||
| 10 | |||||
| Future value of coupons: | |||||
| Par value received: | |||||
| Total portfolio value: | |||||
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