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please help answer all blank cells. please show whats in each cell as well. thank you so much! Question 4. Interest Rate Risk ON YOUR
please help answer all blank cells. please show whats in each cell as well. thank you so much!
Question 4. Interest Rate Risk ON YOUR OWN You will need $50,000 in 5 years to buy your dream car. You want to invest in one of two bonds. Bond A: 7 percent coupon with maturity in 5 years Bond B: 8.6 percent coupon with maturity in 6 years (a). What is the price value of each bond? How much will have to be invested in each bond to meet the objective? Objective (amount of eash that will be needed) Years to maturity Coupon rate Par value Yicld to maturity Annual coupon payment Price (PV) Future value of all the coupon payments Terminal value (per bond) F of bends that must be purhased Total cost \begin{tabular}{|c|c|} \hline Bond A & Bond B \\ \hline $50,000 & $50,000 \\ 5 & 6 \\ 7.0% & 8.6% \\ $1,000 & $1,000 \\ 5.0% & 6.0% \\ \hline & \\ & \\ & \\ & \\ & \\ \hline \end{tabular} objective. Given the current prices of each bond, calculate the duration of each bond. Given the durations, which bonds, if any, will meet Bond Settlement Maturity Coupon rate Yield to Duration Bebjective? (Yesor 116 date date maturity (in years) No) \begin{tabular}{|lllll|} \hline Bond A & 12/5/23 & 12/5/28 & 7.0% & 5.0% \\ Bond B & 12/5/23 & 12/5/29 & 8.6% & 6.0% \\ \hline \end{tabular} Question 4. Interest Rate Risk ON YOUR OWN You will need $50,000 in 5 years to buy your dream car. You want to invest in one of two bonds. Bond A: 7 percent coupon with maturity in 5 years Bond B: 8.6 percent coupon with maturity in 6 years (a). What is the price value of each bond? How much will have to be invested in each bond to meet the objective? Objective (amount of eash that will be needed) Years to maturity Coupon rate Par value Yicld to maturity Annual coupon payment Price (PV) Future value of all the coupon payments Terminal value (per bond) F of bends that must be purhased Total cost \begin{tabular}{|c|c|} \hline Bond A & Bond B \\ \hline $50,000 & $50,000 \\ 5 & 6 \\ 7.0% & 8.6% \\ $1,000 & $1,000 \\ 5.0% & 6.0% \\ \hline & \\ & \\ & \\ & \\ & \\ \hline \end{tabular} objective. Given the current prices of each bond, calculate the duration of each bond. Given the durations, which bonds, if any, will meet Bond Settlement Maturity Coupon rate Yield to Duration Bebjective? (Yesor 116 date date maturity (in years) No) \begin{tabular}{|lllll|} \hline Bond A & 12/5/23 & 12/5/28 & 7.0% & 5.0% \\ Bond B & 12/5/23 & 12/5/29 & 8.6% & 6.0% \\ \hline \end{tabular} Step by Step Solution
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