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I need help I have some examples with the questions and the assignments I need help on will be the first picture A B C

I need help I have some examples with the questions and the assignments I need help on will be the first picture

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A B C D E F G H J K L M N 1 1. Consider a bond issued by Wal-Mart with a maturity date of December 2022 and a stated annual coupon rate of 4.55%. In December 2018, with 4 years left to maturity, investors owing the bonds were only requiring a 2.48% rate of return. What would be the value of the bonds to these investors? 2 FV 1,000 FV is always 1000 for any bonds rate 0.0248 nper pmt 45.50 = FV * Coupon Rate = 1000 * 0.0455 = 45.50 type PV = ($1,077.91) (D CO OR 10 PV = ($1,077.91) Enter each number by moving your mouse to the correponding cell and click (e.g. cell C2 for fv) 11 12 Hit Enter Key when all numbers are entered 13RHIM 4322 * Demo Exercise 5 * Characteristics and Valuation of Bonds Information Sheet Bond Valuation 1. Consider a bond issued by Wal-Mart with a maturity date of December 2022 and a stated annual coupon rate of 4.55%. In December 2018, with 4 years left to maturity, investors owing the bonds were only requiring a 2.48% rate of return. What would be the value of the bonds to these investors? 2. Suppose our firm decides to issue 20-year bonds with annual coupon payments. We decide to offer a 12% coupon rate. The required return on this kind of corporate bonds is currently 14%. What would be the value of these bonds to investors? 3. Suppose our firm decides to issue 20-year bonds. We decide to offer a 12% coupon rate. The required return on bonds of similar risk is 10%. What is the bond's value to investors? 4. You own a bond that pays 10% in annual coupon rate. It matures in 15 years. Calculate the value of the bond to you as the investor if your required rate of return on the bonds is (a) 8%, (b) 10%, and (c) 12%, respectively. Expected Rate of Return of Bond (Yield to Maturity) 5. The market price is $900 for a 10-year bond that pays 8% coupon rate. What is the bond's expected rate of return (Yield to Maturity)? 6. Exxon Mobil 20-year bonds pay 9% coupon rate annually. If bonds sell at $945, what is the bonds' expected rate of return (Yield to Maturity)? 7. Suppose a bond sells at $898.90 and 10% coupon rate with 8 years to maturity and annual coupon interest payments. What is the bond's expected rate of return (Yield to Maturity)? Investment Decisions 8. Cranston Industries just issued 30-year bonds that pay 8.5% coupon rate annually. a. The bonds sold for $1,107.20. Calculate the bond's expected rate of return (Yield to Maturity). Investors require a return rate of 7.75% on the bonds. Determine the value of the bond to you as an investor. C. Should you purchase the bond? Why? 9. Monster Zinc just issued 20-year bonds that pay 7.65% coupon rate annually. a. The bonds sold for $990.25. Calculate the bond's expected rate of return ( Yield to Maturity). Investors require a rate of 6.45% on the bonds. Determine the value of the bond to you as an investor. Should you purchase the bond? Why?RHIM 4322 * Homework 5 * Characteristics and Valuation of Bonds Please complete and show work in an excel spreadsheet following the Demo Exercise. Do transfer the financial data to the spreadsheet. No need to show the explanatory notes like what is being provided in the Demo Exercise. Submit the Homework spreadsheet using this filename "RHIM4322- Last Name-Homework 5" 1. Calculate the value of a bond that will mature in 20 years. The annual coupon interest rate is 7.75%, and the investor's required rate of return is 8.25%. 2. You own a bond that pays 12% in annual coupon interest. It matures in 15 years. Calculate the value of the bond if your required rate of return on the bonds is (a) 8%, (b) 12%, and (c) 15%, respectively. 3. Assume the market price of a 5-year bond for Margaret Inc. is $900. The bond has an annual coupon interest rate of 6%. What is the bond's expected rate of return (Yield to Maturity)? 4. National Steel 15-year bonds pay 8% coupon interest annually. a. The market price of the bonds is $1,085. Compute the bond's expected rate of return (Yield to Maturity). b. Your required rate of return is 10%. Determine the value of the bond to you. c. Should you purchase the bond? Why?A B C D E F G H K L M N 13 14 2. Suppose our firm decides to issue 20-year bonds with annual coupon payments. We decide to offer a 12% coupon rate. The required return on this kind of corporate bonds is currently 14%. What would be the value of these bonds to investors? 15 FV 1,000 16 rate 0.14 17 nper 20 18 pmt 120.00 19 type 20 PV = ($867.54) 21 22 3. Suppose our firm decides to issue 20-year bonds. We decide to offer a 12% coupon rate. The required return on bonds of similar risk is 10%. What is the bond's value to inunstore? 23 FV 1,000 24 rate 0.10 25 nper 20 26 pmt 120.00 27 type 28 PV = ($1,170.27) 29Calibri 11 A B C D E F G H K M N 30 4. You own a bond that pays 10% in annual coupon rate. It matures in 15 years. Calculate the value of the bond to you as the investor if your required rate of return on the bonds is (a) 8%, (b) 10%, and (c) 12%, respectively 31 (a) FV 1,000 32 rate 0.08 33 nper 15 34 pmt 100.00 35 type 36 PV = ($1,171.19) 37 38 (b) FV 1,000 39 rate 0.10 40 nper 15 41 pmt 100.00 42 type 43 PV = ($1,000.00) 44 45 (c) FV 1,000 46 rate 0.12 47 nper 15 48 pit 100.00 49 type 0 50 PV = $863.78) 51 52

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