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Please fill in the yellow boxes and show work in excel form Step 1: Find the coupon payments plus the interest-on-interest at the end of
Please fill in the yellow boxes and show work in excel form
Step 1: Find the coupon payments plus the interest-on-interest at the end of investment horizon. Coupon rate (*) 9.00% Years to maturity 20 Par value (MS) 100 YTM (%) 8.00% Investment horizon (years) 3 Number of periods (n) Semi-annual coupon payment (CS) Price value (5) 109.90 Semi-annual reinvestment rate (r.a Coupon payments + interest-on- interest (5) Reinvestment rate(% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% Step 2: Calculate the projected sale price (i.e., the horizon price). Years to maturity 17 Number of periods (m) Semi-annual yield (r.) Horizon price Total future value (S) Semi-annual return (%) Effective total return% Reinvestment rate (%) 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% Yield (end-of- horizon,%) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Step 1: Find the coupon payments plus the interest-on-interest at the end of investment horizon. Coupon rate (*) 9.00% Years to maturity 20 Par value (MS) 100 YTM (%) 8.00% Investment horizon (years) 3 Number of periods (n) Semi-annual coupon payment (CS) Price value (5) 109.90 Semi-annual reinvestment rate (r.a Coupon payments + interest-on- interest (5) Reinvestment rate(% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% Step 2: Calculate the projected sale price (i.e., the horizon price). Years to maturity 17 Number of periods (m) Semi-annual yield (r.) Horizon price Total future value (S) Semi-annual return (%) Effective total return% Reinvestment rate (%) 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% Yield (end-of- horizon,%) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%Step by Step Solution
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