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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.
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% 102.50Step by Step Solution
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