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Answer all questions in yellow on Excel sheet please + show formulas! HW 5 Bond Table MaturityDefault CouponMarket Rate Price Face risk-free Risk Risk Security
Answer all questions in yellow on Excel sheet please + show formulas!
HW 5 Bond Table MaturityDefault CouponMarket Rate Price Face risk-free Risk Risk Security Maturity Value YTM rate Premium Premium Treasury Treasury Treasury Treasury Treasury Corp A Corp B Corp C 1year $ 1,000 0.00% $ 968.99 3years $ 1,000 1.90% $ 939.06 5years $ 1,000 4.30% $ 932.42 10 years $ 1,000 6.80% $1,007.12 20 years $ 1,000 6.60% $ 908.25 A 5years $ 1,000 8.10% $1,000.00 10 years $ 1,000 7.90% $ 859.88 AA 20 years $ 1,000 8.50% $ 887.80 Follow-up Question #1 What price would you pay for a 10-year, AA bond with a Face Value of $1,000 and a coupon rate of 7.10%? Follow-up Question #2 What price would you pay for a 5-year, BB bond with a Face Value of $1,000 and a coupon rate of 9.75%Step by Step Solution
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