Consider the following 2 bonds that pay coupons on a semi-annual basis. Both bonds have a face/par value of $1,000.

Bond A is callable and matures 7/15/2024 with a coupon rate of 4.50%.

Call Date #1 is 1/15/2020 with a call price of 102.50 (percent of par).

Call Date #2 is 7/15/2022 with a call price of 101.50 (percent of par).

Settlement date is 7/15/2018 and the quoted price is 102-11 (percent of par with fraction in 32nds). Accrued interest = 0 since settlement is on a coupon date.

Bond B is not callable and matures 9/15/2026 with a coupon rate of 5.25%

Settlement date is 8/15/2018 and the CLEAN quoted price is 98-19 (percent of par with fraction in 32nds).

Questions for Bond A:

1) Calculate the Bond Equivalent Yield to maturity. Use the YIELD function in excel. Verify in excel that you calculated the right yield by adding up the discounted individual cash flows with the result from the yield function.

2) Calculate the Yield to Call for call date #1 and #2. Use the YIELD function in excel. What is the Yield to Worst for this bond?

Questions for Bond B:

1) Calculate the Bond Equivalent Yield to maturity. Use the YIELD function in excel. Note that the function uses the clean price as an input.

2) Verify in excel that you calculated the right yield by discounting the cash flows with the yield from (1). To do this you will need to calculate accrued interest and the dirty price, since the settlement date is not on the coupon date. Assume a 30/360 day count convention.

Using Excel and the right functions, I need help with columns E and F from the pictures attaced below. The picture that is printed on paper is an example. Therefore, Ignore the numbers from this picture on paper. Use the numbers from the below information or from the two pictures that are of a spreadsheet on a computer screen!!! (Again, the numbers on the piece of paper arent valid, just given for an example of what I'm looking for.)

Call Date #1:

Call Date #2:

Rough Example (Ignore the numbers used in this):

JCash low 1 Pay per 2 Face 3 Coupon 4 Years to Maturity 5 Price (per 100) 102.3438 n Cash Flow DCF 2 1,000 4.50% 2 4 2.25% 7 8 Yield Function 4.50% 10 Settlement Date 7/15/2018 11 Maturity Date 7/15/2024 12 | Call Date #1 1/15/2020 13 Years to Call 14 Call Price 15 16 10 12 0 102.50 JCash low 1 Pay per 2 Face 3 Coupon 4 Years to Maturity 5 Price (per 100) 102.3438 n Cash Flow DCF 2 1,000 4.50% 2 4 2.25% 7 8 Yield Function 4.50% 10 Settlement Date 7/15/2018 11 Maturity Date 7/15/2024 12 | Call Date #1 1/15/2020 13 Years to Call 14 Call Price 15 16 10 12 0 102.50