Question
Good morning! Please teach me how to do the work in excel if possible. Bond P is a premium bond with a coupon rate of
Good morning!
Please teach me how to do the work in excel if possible.
Bond P is a premium bond with a coupon rate of 12 percent. Bond D has a coupon rate of 7 percent and is selling at a discount. Both bonds make annual payments, have a YTM of 9 percent, and have five years to maturity.
a.What is the current yield for Bond P and Bond D?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b.If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Thank you!
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