Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Evaluate two bonds by performing calculations 1 through 6 below. Use Excel to make the calculations and please show the Function Arguments. Bond Description Sector
Evaluate two bonds by performing calculations 1 through 6 below. Use Excel to make the calculations and please show the Function Arguments.
Bond Description | Sector | Type | Freq. | Yrs to Mty | Curr. Price (per $100 par) | Moody | S&P |
JOHNSON&JOHNSON NOTE CALL MAKE WHOLE, 5.950%, 15-AUG-2037 | Mfg | Fixed | Semi-Ann | 14 | $125.35 | AAA | AAA |
GENERAL ELECTRIC CO MTN, 3.500%, 15-NOV-2032 | Mfg | Fixed | Semi-Ann | 9 | $82.19 | BAA1 | BBB+ |
Note: Bond Prices are quoted in dollars / $100 Par, so when doing the calcs make the Par value adjustment to $100.
- Yield to Maturity at current price
- Current Yield at current price
- Current Value assuming the appropriate discount rate = 7%
- Expected Value in 5 Years if the appropriate discount rate remains 7%
- Expected Value in 5 Years if the appropriate discount rate increases to 10%
- Expected Value in 5 Years if the appropriate discount rate falls to 5%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started