d. What is the bond's yield to call? Round your answer to two decimal places. % called if and only if the going rate of interest fal/s below the coupon rate. This is an oversimplification, but assume it for purposes of this problem.) Round your answers to the nearest cent. from the date of issue at a call price of $1,060. Use your spreadsheet to find the bond's yield. Round your answers to two decimal places. Yield to maturity: Yield to call: % % e. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. Conducting a sensitivity analysis of price to changes in the going market interest rate for the bond Nominal market rate Bond price if it's not called Bond price if it's called f. Calculating the bond's yield Settlement date (today) Maturity date Call date Coupon rate Par value ( % of par value) Current price (\% of par value) Call price ( % of par value) Frequency (semiannual bonds) Basis (360- or 365-day year) Yield to maturity Yield to call 7% \#N/A # N/A Formulas Excel Activity: Bond Valuation the bond has just been issued.) The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. X Download spreadsheet Ch04 P24 Build a Model-fb69a4.xlsx a. What is the bond's yield to maturity? Round your answer to two decimal places. % b. What is the bond's current yield? Round your answer to two decimal places. % c. What is the bond's capital gain or loss yield? Round your answer to two decimal places. Use a minus sign to enter a negative value, if any. % d. What is the bond's yield to call? Round your answer to two decimal places. % called if and only if the going rate of interest fa/ls below the coupon rate. This is an oversimplification, but assume it for purposes of this problem.) Round your answers to the nearest cent. 1 Bond Valuation 2 Years to maturity Number of coupon payment per year Coupon rate Par value Current price Call price Years until bond is callable 20 a. Calculating the bond's yield to maturity Periodic YTM Annualized nominal YTM Formulas b. Calculating the bond's current yield Current yield \#N/A c. Calculating the bond's capital gain or loss yield Capital gain/loss yield \#N/A d. Calculating the bond's yield to call Periodic YTC Annualized nominal YTC \#N/A e. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. Conducting a sensitivity analysis of price to changes in the going market interest rate for the bond Nominal market rate 7% Bond price if it's not called Bond price if it's called \#N/A 31 Formulas f. Calculating the bond's yield Settlement date (today) Maturity date Call date 10/25/2020 Coupon rate 7/1/2035 7/1/2024 10%