Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE ANSWER QUESTION IN EXCEL WITH FORMULAS SHOWN THANKS! NEED QUESTION 2 ANSWERED USING THE PRICE FORMULA Bond AAPL: Coupon rate Face value Coupons per
PLEASE ANSWER QUESTION IN EXCEL WITH FORMULAS SHOWN THANKS!
NEED QUESTION 2 ANSWERED USING THE "PRICE" FORMULA
Bond AAPL: Coupon rate Face value Coupons per year Years to maturity $ 4.75% 1,000.00 2 8 Bond GOOG: Coupon rate Face value Coupons per year Years to maturity $ 5.10% 1,000.00 2 15 Question 1 - Interest rates have increased by 1.3% since their original issue dates, calculate the new YTM, Prices, and the Percent Change in Price for both Bond AAPL and Bond GOOG. (15 points) Increase in interest rates 1.30% New YTM AAPL New YTM GOOG 6.05% 6.40% New Price of AAPL New Price of GOOG $918.51 $875.83 % change in AAPL % change in GOOG -8.15% -12.42% Question 2 - Interest rates have decreased by 0.75% since their original issue dates, calculate the new YTM, Prices, and the Percent Change in Price for both Bond AAPL and Bond GOOG. (15 points) Fall in interest rates -0.75% New YTM AAPL New YTM GOOG 4.00% 4.35% New Price of AAPL New Price of GOOG % change in AAPL % change in GOOGStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started