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how to put input this as a formula? A B D E F. G H 1 2 3 4 Bond X is a premium bond
how to put input this as a formula?
A B D E F. G H 1 2 3 4 Bond X is a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. What is the dollar price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years? 5 A B D E F G 5 6 7 8 9 10 11 Bond X: Coupon rate Yield to maturity Settlement date Maturity date Maturity date Maturity date Maturity date Maturity date 9% 7% 1/1/2000 1/1/2013 1/1/2012 1/1/2010 1/1/2005 1/1/2001 12 13 14 15 16 17 18 Redemption (% of par) # of coupons per year 100 2 19 20 21 22 Bond Y: Coupon rate Yield to maturity 7% 9% 23 24 25 24 25 26 Complete the following analysis. Do not hard code values in your answers. 27 28 29 30 31 =D3 Price of Bond X Maturity (years) 13 12 10 5 32 33 34 35 1 36 37 38 39 40 Price of Bond Y Maturity (years) 13 12 10 5 41 42 43 44 1 45 46 47 Sheet1 READY 100% Aftemntist 10/10 Hint Show Mo A B D E F. G H 1 2 3 4 Bond X is a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. What is the dollar price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years? 5 A B D E F G 5 6 7 8 9 10 11 Bond X: Coupon rate Yield to maturity Settlement date Maturity date Maturity date Maturity date Maturity date Maturity date 9% 7% 1/1/2000 1/1/2013 1/1/2012 1/1/2010 1/1/2005 1/1/2001 12 13 14 15 16 17 18 Redemption (% of par) # of coupons per year 100 2 19 20 21 22 Bond Y: Coupon rate Yield to maturity 7% 9% 23 24 25 24 25 26 Complete the following analysis. Do not hard code values in your answers. 27 28 29 30 31 =D3 Price of Bond X Maturity (years) 13 12 10 5 32 33 34 35 1 36 37 38 39 40 Price of Bond Y Maturity (years) 13 12 10 5 41 42 43 44 1 45 46 47 Sheet1 READY 100% Aftemntist 10/10 Hint Show MoStep by Step Solution
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