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I would like to know how to work this in excel please.........Perform instant experiments ( run your own numbers, graph the findings, and then draw
I would like to know how to work this in excel please.........Perform instant experiments run your own numbers, graph the findings, and then
draw the conclusions on whether changing various inputs causes an increase or
decrease in the Bond Price and by how much.
A What happens when the annual coupon rate is increased?
B What happens when the yield to maturity is increased?
C What happens when the number of payments year is increased?
D What happens when the face value is increased?
E What is the relationship between the price of a par bond and time to
maturity? Try this question both when the YTM coupon rate, and when
YTM coupon rate, and see the differences.
F What happens when the annual coupon rate is increased to the point that it
equals the yield to maturity? What happens when it is increased further?
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