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Bond #2: 30 Year MaturityBond #2 is a 30 year, 6.25% semiannual coupon bond. It has a par/face value of $3,000 and may be called

Bond #2: 30 Year MaturityBond #2 is a 30 year, 6.25% semiannual coupon bond. It has a par/face value of $3,000 and may be called in 10 years at a call price of $7,500. The bond sells for $3,000. Complete the information in the table below.
Bond InformationFormulasYears to maturity:30How long it is forPeriods per year:2Number of times it pays interestPeriods to maturity: number of years x number of payment periods 25 years x 2 periodCoupon rate:6.25%Your interest ratePar/face value:$3,000Face valueaka the value of the bondPeriodic payment:Par value x (coupon rate / periods per year)Current price$3,000Sale priceCall price:$7,500Amount paid should the bond be called earlyaka the person using the bond money pays their loan off earlyYears till callable:10When they can call it in, meaning pay you the $6000 for itPeriods till callable:number of years x number of periodsBased on the bond information above, calculate the following information for Bond #1:Hints:FormulasPeriodic Yield to Maturity =Try using rate function of Excel and enter periods to maturity, periodic payment, negative current price, par value; this is the yield for each period you own the bondusing rate function, enter periods to maturity, periodic payment, negative current price, par valueAnnual Yield to Maturity =Use your periodic yield to maturity and the periods per year; this is your yield for each yearPeriodic yield to maturity x periods per yearAnnual Coupon Rate =This is a dollar value, not a percent; the payment amount you can expect each yearPeriodic payment x periods per yearCurrent yield =Ann. Coupon Rate / Current Price; yield based on current conditionsAnn. Coupon / Current PricePeriodic Yield to Call = Try using the RATE function of ExcelRate function using: periods to call, periodic payment, negative current price, call priceAnnual Yield to Call = Use your periodic yield to call x periods per year; this is your yield for each year until the bond is callable
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Bond #2: 30 Year Maturity
Bond #2 is a 30 year, 6.25% semiannual coupon bond. It has a par/face value of $3,000 and may be called in 10 years at a call price of $7,500. The bond sells for $3,000. Complete the information in the table below.
Bond Information Formulas
Years to maturity: 30 How long it is for
Periods per year: 2 Number of times it pays interest
Periods to maturity: number of years x number of payment periods 25 years x 2 period
Coupon rate: 6.25% Your interest rate
Par/face value: $3,000 Face valueaka the value of the bond
Periodic payment: Par value x (coupon rate / periods per year)
Current price $3,000 Sale price
Call price: $7,500 Amount paid should the bond be called earlyaka the person using the bond money pays their loan off early
Years till callable: 10 When they can call it in, meaning pay you the $6000 for it
Periods till callable: number of years x number of periods
Based on the bond information above, calculate the following information for Bond #1:
Hints: Formulas
Periodic Yield to Maturity = Try using rate function of Excel and enter periods to maturity, periodic payment, negative current price, par value; this is the yield for each period you own the bond using rate function, enter periods to maturity, periodic payment, negative current price, par value
Annual Yield to Maturity = Use your periodic yield to maturity and the periods per year; this is your yield for each year Periodic yield to maturity x periods per year
Annual Coupon Rate = This is a dollar value, not a percent; the payment amount you can expect each year Periodic payment x periods per year
Current yield = Ann. Coupon Rate / Current Price; yield based on current conditions Ann. Coupon / Current Price
Periodic Yield to Call = Try using the RATE function of Excel Rate function using: periods to call, periodic payment, negative current price, call price
Annual Yield to Call = Use your periodic yield to call x periods per year; this is your yield for each year until the bond is callable Periodic yield to call x periods per year
Bond .10 year Maturity
Bond #l is a 10 year, 4.5% semiannual coupon bond. It has a par/face value or $5,000 and may be called in 6 years at a call price of
sa500 The bond sels for 55 250 Complete the intormation in the table below.
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Rond HJ is a 20 vear 625% camiannual rounnn hand it hac a nar/fare value of 42 nnn and mav he ralled in 10 vears at a rall nrire Bond \#1: 10 Year Maturity Bond 1 is a 10 year, 4.5% semiannual coupon bond, It has a par/face value of $5,000 and may be called in 6 years at a call price of $7,500. The bond sells for $,250. Complete the information in the table below. effered, at well at predictions for thock walution. invertor evalution. The inhlornation tor each band it outlined beilie rave been oompleted gandis 10 Item Matuitx 53,500 The bond urlis for 55.250, Complete the migrmurion in the tatie bete Ronder-10Trat Mitupity 57.500. The bond selt tor 53.000. Complete the niermation in the tatiof beis=

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