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is it possible to snswer both these questions on excel woth formulas shown in text boxes please. Question#1 (50 PTS) Boeing's 6.875% semi-annual coupon bonds
is it possible to snswer both these questions on excel woth formulas shown in text boxes please.
Question\#1 (50 PTS) Boeing's 6.875% semi-annual coupon bonds with face value of $100 mature on 10/15/2043. They are traded in the market as of April 2nd 2021 at $136.98. A) What is the YTM of the Boeing Bonds? B) Calculate the Accrued interest and the price you would pay if you purchase the bond on April 2nd2021. Hint: You should calculate the accrued interest and add it to the clean price of the bond. C) Based on 20 Year Treasury yield, calculate the credit spread on Boeing Bonds Hint: Credit Spread is the yield differential between Treasury and Corporate Bond yields. You can find 20 Year Treasury yields in the following URL: https://home.treasury.gov/resource-center/data-chartcenter/interestrates/TextView?type=daily treasury yield curve\&fi eld tdr date value month =202311 Question\#2: (50 PTS) Suppose ABC Corp is considering the acquisition of Hatfield Medical Supplies. ABC Corp M\&A team has gathered the following data regarding Hatfield, with all dollars reported in millions: (1) most recent sales of $2,000; (2) most recent total net operating capital, OpCap =$1,120; (3) most recent operating profitability ratio, OP= NOPAT / Sales =12.5%; and (4) most recent capital requirement ratio, CR=OpCap/Sales =50%. They estimate that the growth rate in sales from Year 0 to Year 1 will be 10%, from Year 1 to Year 2 will be 8%, from Year 2 to Year 3 will be 5%, and from Year 3 to Year 4 will be 5%. They also estimate that the long-term growth rate beyond Year 4 will be 5%. ABC Corp executives think that their investors (creditors and equity investors) would require 10% return on their investment. A) Estimate the free cash flows of Hatfield in the next four years. B) Estimate the value of operating assets of Hatfield. Question\#1 (50 PTS) Boeing's 6.875% semi-annual coupon bonds with face value of $100 mature on 10/15/2043. They are traded in the market as of April 2nd 2021 at $136.98. A) What is the YTM of the Boeing Bonds? B) Calculate the Accrued interest and the price you would pay if you purchase the bond on April 2nd2021. Hint: You should calculate the accrued interest and add it to the clean price of the bond. C) Based on 20 Year Treasury yield, calculate the credit spread on Boeing Bonds Hint: Credit Spread is the yield differential between Treasury and Corporate Bond yields. You can find 20 Year Treasury yields in the following URL: https://home.treasury.gov/resource-center/data-chartcenter/interestrates/TextView?type=daily treasury yield curve\&fi eld tdr date value month =202311 Question\#2: (50 PTS) Suppose ABC Corp is considering the acquisition of Hatfield Medical Supplies. ABC Corp M\&A team has gathered the following data regarding Hatfield, with all dollars reported in millions: (1) most recent sales of $2,000; (2) most recent total net operating capital, OpCap =$1,120; (3) most recent operating profitability ratio, OP= NOPAT / Sales =12.5%; and (4) most recent capital requirement ratio, CR=OpCap/Sales =50%. They estimate that the growth rate in sales from Year 0 to Year 1 will be 10%, from Year 1 to Year 2 will be 8%, from Year 2 to Year 3 will be 5%, and from Year 3 to Year 4 will be 5%. They also estimate that the long-term growth rate beyond Year 4 will be 5%. ABC Corp executives think that their investors (creditors and equity investors) would require 10% return on their investment. A) Estimate the free cash flows of Hatfield in the next four years. B) Estimate the value of operating assets of Hatfield Step by Step Solution
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