Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the available information, how do you find the FV of reinvested coupons using excel functions? The answer is: * FV of reinvested coupons, %

Given the available information, how do you find the FV of reinvested coupons using excel functions?

The answer is:

* FV of reinvested coupons, % of par [26.26]

Total accumulated, % of par [128.76]

Annualized total return [6.41%]

My question is mainly about the first one as I could not figure it out.

image text in transcribed

Inputs Settlement Maturity Annual Coupon rate Maturity value, % of par Current price, % of par Call price, % of par First callable on Put price, % of par Putable on Coupons per year Basis Yield change (for E7) 9/30/2019 9/30/2031 7.00% 100 103.25 105 9/30/2022 Output Yield to maturity Yield to first call Yield to put Macaulay Duration Modified Duration New Price if YTM changes by amount in B13 % Price Change if YTM changes by % in B13 6.60% 7.30% *Called on date in cell B8. 5.37% *Put on the date in cell B10 8.38 8.11 97.99 -5.09% *Actual (not estimated by dur-n) 9/30/2024 0.65% Information to compute total return Number of reinvested coupons Annual coupon reinvest rate Selling price, % of par Total return computation FV of reinvested coupons, % of par Total accumulated, % of par Annualized total return 4.60% 102.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Directors Handbook

Authors: Glynis D Morris, Sonia McKay, Andrea Oates

5th Edition

1566768691, 978-1566768696

More Books

Students also viewed these Finance questions

Question

5. Identify and describe nine social and cultural identities.

Answered: 1 week ago

Question

2. Define identity.

Answered: 1 week ago

Question

4. Describe phases of majority identity development.

Answered: 1 week ago