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Assume you pay $1000 for a $1000 face value bond with a 6% coupon rate at the beginning of the year. At the end of

Assume you pay $1000 for a $1000 face value bond with a 6% coupon rate at the beginning of the year. At the end of the year, yield to maturity on similar bonds rises to 8%. Create the following table using excel and fill the empty columns using the excel commands (you should do all the computations in excel, NOT just type the answers in empty cells)

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Price at the end of the Rate of capital gain or loss Rate of return during the first Years to Current maturity yield 1 5 Initial price 1000 year year 2 1000 10 20 1000 1000 1000 1000 30 50 Price at the end of the Rate of capital gain or loss Rate of return during the first Years to Current maturity yield 1 5 Initial price 1000 year year 2 1000 10 20 1000 1000 1000 1000 30 50

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