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f. Now assume the date is 10l25l2014. Assume further that a 12%, 10-year bond was issued on 7l1l2 interest semiannually (January 1 and July 1},

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f. Now assume the date is 10l25l2014. Assume further that a 12%, 10-year bond was issued on 7l1l2 interest semiannually (January 1 and July 1}, and sells for $1,100. Use your spreadsheet to find the t Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown bl Basic info: Settlement (today) ll25l2010 Maturity TlJJZOZD 7!]12020 Call date Coupon rate 12% Current price (% of par) 110 Redemption (% of par val ue) 100 104 Call price Frequency (for semiannual) 2 Basis (360 or 365 day year) 1 Yield to Maturity: _Hint: Use the Yield function.For dates, either refer to cells 0122 and To find the yield to call, use the YIELD function, but with the call price rather than par value as the redemption

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