please answer with an excel spreadsheet.. thank you so much!!!
ha par value of this bond is 4.1 al compounding What is its yielu u value bond? Zare Coupon Bonds You find a zero coupon bond with a parvo LO 2 $10,000 and 13 years to maturity. If the yield to maturity on this bom percent, what is the price of the bond? Assume semiannual compo periods. 16. Valuing Bonds Lion Corp. has a $2,000 par value bond outstanding coupon rate of 3.8 percent paid semiannually and 13 years to maturi yield to maturity of the bond is 4.9 percent. What is the dollar price bond? 17. Valuing Bonds Union Local School District has bonds outstanding coupon rate of 3.2 percent paid semiannually and 16 years to maturitu yield to maturity on these bonds is 3.7 percent and the bonds have a value of $5,000. What is the dollar price of the bonds? outstanding with a to maturity. The dollar price of the LO 2 LO 2 maturity. The INTERMEDIATE (Questions 18-33) LO 2 18. Bond Price Movements Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YIM of 7.5 percent and also 13 years to maturity. What are the prices of these bonds today assuming both bonds have a $1.000 par value? If interest rates remain unchanged, what do you expect the prices of these bonds to be in I year In 3 years? In 8 years? In 12 years? In 13 years? What's going on here? Illustrate your answers by graphing bond prices versus time to maturity LO 2 19. Interest Rate Risk Both Bond Bill and Bond Ted have 5.8 percent coupons make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 25 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Bill? Or Bond Ted? Both bonds have a par value of $1.000. If rates! were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Bill be then? Of Bond Ted? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds? LO 2 20. Interest Rate Risk Bond J has a coupon rate of 4 percent. Bond Khas a coupon rate of 14 percent. Both bonds have 17 years to maturity, a par Value of $1,000, and a YTM of 8 percent, and both make semiannual payments. interest rates suddenly rise by 2 percent, what is the percentage price change, of these bonds? What if rates suddenly fall by 2 percent instead? What doo this problem tell you about the interest rate risk of lower-coupon bonds! CHAPTER 6 Interest Rates and Bond Valuation LO 2 21. Bond Yields Bart Software has 5.7 percent coupon bonds on the market with 22 years to maturity. The bonds make semiannual payments and currently sell for 97 percent of par. What is the current yield? The YTM? The effective annual yield? LO 2 22. Bond Yields BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 4.8 percent coupon bonds on the market that sell for $1,028, make semiannual payments, have a $1.000 par value, and mature in 25 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? with an invoice price of $1.043. The
