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I need some assistance. Please review the attached pdf file. I Need These Assignments Completed in an Excel (xls) file. Please show all your work
I need some assistance. Please review the attached pdf file.
I Need These Assignments Completed in an Excel (xls) file. Please show all your work and be accurate. I will tip you for doing a good job Chapter 5: 1.) What is the discount yield, bond equivalent yield, and effective annual return on a $1 million Treasury bill that currently sells at 97.375 percent of its face value and is 65 days from maturity? 2.) What is the discount yield, bond equivalent yield, and effective annual return on a $5 million commercial paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity? 3.) Calculate the bond equivalent yield and effective annual return on a negotiable CD that is 115 days from maturity and has a quoted nominal yield of 6.56 percent. 5.) You would like to purchase a Treasury bill that has a $10,000 face value and is 68 days from maturity. The current price of the Treasury bill is $9,875. Calculate the discount yield on this Treasury bill. 6.) Suppose you purchase a T-bill that is 125 days from maturity for $9,765. The T-bill has a face value of $10,000. a. Calculate the T-bill's quoted discount yield. b. Calculate the T-bill's bond equivalent yield. 7.) You can purchase a T-bill that is 95 days from maturity for $9,965. The T-bill has a face value of $10,000. a. Calculate the T-bill's quoted yield. b. Calculate the T-bill's bond equivalent yield. c. Calculate the T-bill's EAR. I Need These Assignments Completed in an Excel (xls) file. Please show all your work and be accurate. I will tip you for doing a good job 16.) You can buy commercial paper of a major U.S. corporation for $495,000. The paper has a face value of $500,000 and is 45 days from maturity. Calculate the discount yield and bond equivalent yield on the commercial paper. Chapter 6: 1.) Refer to the T-note and T-bond quotes in Table 6-1 . a. What is the asking price on the 2.750 percent November 2042 T-bond if the face value of the bond is $10,000? b. What is the bid price on the 3.125 percent August 4.) On October 5, 2015, you purchase a $10,000 T-note that matures on August 15, 2027 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2015). The coupon rate on the T-note is 4.375 percent and the current price quoted on the bond is 105.250 percent. The last coupon payment occurred on May 15, 2015 (145 days before settlement), and the next coupon payment will be paid on November 15, 2015 (39 days from settlement). a. Calculate the accrued interest due to the seller from the I Need These Assignments Completed in an Excel (xls) file. Please show all your work and be accurate. I will tip you for doing a good job buyer at settlement. b. Calculate the dirty price of this transaction. 8.) You can invest in taxable bonds that are paying a yield of 9.5 percent or a municipal bond paying a yield of 7.75 percent. If your marginal tax rate is 21 percent, which security bond should you buy? 9.) A municipal bond you are considering as an investment currently pays a yield of 6.75 percent. a. Calculate the tax equivalent yield if your marginal tax rate is 28 percent. b. Calculate the tax equivalent yield if your marginal tax rate is 21 percent. 15.) A $1,000 face value corporate bond with a 6.5 percent coupon (paid semiannually) has 15 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.2 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 8.5 percent. What will be the change in the bond's price in dollars and percentage terms? 16.) A client in the 33 percent marginal tax bracket is comparing a municipal bond that offers a 4.5 percent yield to maturity and a similar risk corporate bond that offers a 6.45 percent yield. Which bond will give the client more profit after taxes? 19.) Hilton Hotels Corp. has a convertible bond issue outstanding. Each bond, with a face value of $1,000, can be converted into common shares at a rate of 61.2983 shares of stock per $1,000 face value bond (the conversion rate), or $16.316 per share. Hilton's common stock is trading (on the NYSE) at $15.90 per share and the bonds are trading at $975. I Need These Assignments Completed in an Excel (xls) file. Please show all your work and be accurate. I will tip you for doing a good job a. Calculate the conversion value of each bond. b. Determine if it is currently profitable for bond holders to convert their bonds into shares of Hilton Hotels common stock. Chapter 7: 1.) You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 25th payment. c. Calculate the amount of interest and, separately, principal paid in the 225th payment. d. Calculate the amount of interest paid over the life of this mortgage. 4.) You plan to purchase a $150,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 5.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the first six payments. 8.) You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.25 percent, or a 15year mortgage with a rate of 6.50 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in I Need These Assignments Completed in an Excel (xls) file. Please show all your work and be accurate. I will tip you for doing a good job interest paid? b. Calculate your monthly payments on the two mortgages. What is the difference 10.) You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 9 percent and zero points. Option 2: Mortgage rate of 8.85 percent and 2 points. Which option should you choose? b. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 10.25 percent and 1 point. Option 2: Mortgage rate of 10 percent and 2.5 points. Which option should you choose? 11.) You plan to purchase a house for $195,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 5.5 percent and zero points. Option 2: Mortgage rate of 5.35 percent and 1.5 points. Which option should you chooseStep by Step Solution
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