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Each group will submit one document with the answers to the following questions and shown work as indicated prior to the deadline The document may
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Each group will submit one document with the answers to the following questions and shown work as indicated prior to the deadline - The document may be either a spreadsheet file or a photo of a hand-written paper.
- I have prepared the following template, which should be perfect for this assignment.
- Do not round intermediate calculations
- Round all dollar-value answers to the nearest cent
- Round all percent answers to the nearest hundredth of a percent
- Round all time answers to the nearest tenth of a unit
- e.g. "4.3 years"
- For questions 1-3, the group must:
- Indicate each cash flow on a timeline labeled with the appropriate unit of time 1 point
- Show the inputs that were entered into calculator 1 point
- E.g. N=6, I/Y=5.5, PV=-100, PMT=0, FV=X
- E.g CF0=-100, C01=50, C02=100, I=10
- Note that for cash flow function inputs, you may exclude the frequency variables unless you set them to something other than 1.
- Clearly state the answer to the question 3 points
- For question 4, clearly state the correct answer. 5 points
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fecbd4b3e5_284668fecbce0d9e.jpg)
- I have prepared the following template, which should be perfect for this assignment.
- e.g. "4.3 years"
- Indicate each cash flow on a timeline labeled with the appropriate unit of time 1 point
- Show the inputs that were entered into calculator 1 point
- E.g. N=6, I/Y=5.5, PV=-100, PMT=0, FV=X
- E.g CF0=-100, C01=50, C02=100, I=10
- Note that for cash flow function inputs, you may exclude the frequency variables unless you set them to something other than 1.
- Clearly state the answer to the question 3 points
Questions:
1.A 7% semiannual coupon bond with a $1000 par value matures in 5 years and currently sells for $946. What is the YTM?
2.A 5.5% coupon bond has a YTM of 6% and matures in 7 years. What is the market price?
3.A 4.5% coupon bond has a market price of $718.79. The yield is 9.9%. How many years until the bond matures?
4.A bond has a face value of $1000 and sells for $897. It pays $35 every six months. What is the current yield?
1 Answer Annual coupon ($) Compounding period Annuity pmt amt Quoted rate/ YTM Per period rate IN 1/Y TPV PMT FV 2 Answer Annual coupon ($) Compounding period Annuity pmt amt Quoted rate/ YTM Per period rate N 1/Y PV |PMT FV 3 Answer Annual coupon ($) Compounding period| Annuity pmt amt Quoted rate/ YTM Per period rate IN /Y PV PMT FV 4 Answer Ann. Coupon Mkt PriceStep by Step Solution
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