Question
Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000 par value. Bonds
Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000 par value. Bonds A, B, and C are semi-annual. Bond D is a zero but calculate its yield with a semi-annual equivalency. Provide your answers to 4 significant digits (example: 6.1234%)
Bond A Price 884.20, annual coupon 7%, maturing in 5 years
Bond B Price 948.90, annual coupon 8%, maturing in 7 years
Bond C Price 967.70, annual coupon 9%, maturing in 4 years
Bond D Price 456.39, maturing in 10 years
PLEASE SHOW EXCEL FORMULA
A B D C Problem 3 A B C YTM Start 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0Step by Step Solution
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