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On August 15, 2000, the Canadian Government issued a bond maturing on February 15, 2030. The bond has a coupon rate of 8.75%, payable semi
On August 15, 2000, the Canadian Government issued a bond maturing on February 15, 2030. The bond has a coupon rate of 8.75%, payable semi annually on 15 February and 15 August. If, on June 27, 2015 a $ 100 face value bond is selling for $125.00, what is the bond's yield to maturity using the following Excel functions. Show the detailed cash flow calculations (2 marks) 1. XIRR (2 marks) 2. Yield (2 marks) 3. Show the calculation that will reconcile the difference in the YTM calculation between XIRR and Yield. (2 marks) On August 15, 2000, the Canadian Government issued a bond maturing on February 15, 2030. The bond has a coupon rate of 8.75%, payable semi annually on 15 February and 15 August. If, on June 27, 2015 a $ 100 face value bond is selling for $125.00, what is the bond's yield to maturity using the following Excel functions. Show the detailed cash flow calculations (2 marks) 1. XIRR (2 marks) 2. Yield (2 marks) 3. Show the calculation that will reconcile the difference in the YTM calculation between XIRR and Yield. (2 marks)
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