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Fill in the yellow shaded cells below. Greg Greely is a recent retiree who is interested in investing some of his savings in corporate bonds.
Fill in the yellow shaded cells below. Greg Greely is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: Bond A has a annual coupon, matures in years, and has a $ face value. Bond B has a annual coupon, matures in years, and has a $ face value. Bond C has an annual coupon, matures in years, and has a $ face value. Each bond has a yield to maturity of Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. Bond A is selling at a discount because its coupon rate is less than the going interest rate YTM Bond B is selling at par because its coupon rate is equal to the going interest rate YTM Bond C is selling at a premium because its coupon rate is greater than the going interest rate YTM Work parts b through e with a spreadsheet. You can also work these parts with a calculator to check your spreadsheet answers if you aren't confident of your spreadsheet solution. You must then go on to work part g with the spreadsheet. Calculate the price of each of the three bonds by filling in the yellow shaded cells below. Basic Input Data Bond A Bond B Bond C Years to maturity Periods per year Periods to maturity Coupon rate Par value Periodic payment Yield to maturity VB $ $ $
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