please help!!!

please solve this example please

3. What is the total retum for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places. c. Calculate the current yield for each of the three bonds. (Hint; The expected current vield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal piaces. Current vield (Bond A): current yield (Bond B): Current yieto (toond Ct : d. If the vield to maturity for each bond remains at 8%, what will be the price of each bond 1 vear from now? Round your answers to the nearest cent. Price (Bond A):5 Price (Bond B) 5 Price (Bond c): 5 What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places. e. Mr. Cark is considering another bond, Bond 0 . It has a 7 , semiannual coupon and a $1,000 face value (i.e, it pays a $35 coupon every 6 months) Elond D is scheduled to mature in 7 years and has a price of $1,120. It is also callable in 5 years ot a call price of $1,050. 1. What is the bonds nominal yeld to maturity? Round your answer to two decimal places. 2. What is the bond's nominal yield to calr? Round your answer to two decimal places. 3. If Mr, Clark were to purchase this bond, would he be more likely to receive the yleld to maturity or yleld to call? Explain your answer. Eacel Activity: Bond Valuation Cifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financiai planner has suggested the following bonds: - Bond A has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 7 \% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has an 8% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a vield to maturity of 8%. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any, If an answer is zero, enter " 0 ". Downlead spreadsheet Bond Voluation-e85739.xisx 4. Before celculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. Bond A is selling at because its coupon rate is. the going interest rate. Bond B is setting st because its coupon rate is the going interest rate. Bond C is selling at because its coupon rate is the going interest rate. D. Calculate the price of each of the three bonds. Round your answers to the nearest cent: Price (Bond A): 5 Price toond 8): $ Create a graph showing the time path of each bond's value. Choose the correct graph. The correct graph is (2) Calculating the expected capital gatins yield for each hend in each year a) Caleuiasing the toeal resirn for each bond in each year (1) Caiculating the boners nominal yield to maturify (a) Calcuiating the bond's nominal yield to call 1. What is the expected current yield for each bond in each year? Round your answers to two decimal places. 3. If Mr. Clark were to purchese this bond, would he be more likely to recelve the yield to maturity or yield to call? Explain your answer. Because the YTM is the YrC, Mr. Clark expect the bond to be called. Consequently, he would earn f. Explain briefly the difference between price risk and reinvestment risk. This risk of a decline in bond values due to an increase in interest rates is called interest rates is called The risk of an income decline due to a drop in Which of the following bonds has the most price risk? Which has the most reinvestment risk? - A 1-vear bond with an 8% annual coupon - A 5 -vear bond with an 8\% annual coupon - A 5 -vear bond with a zero coupon - A 10-year bond with an B\% annual coupon - A 10 -year bond with a zero coupon A has the most price risk. A has the most reinvestment risk. Caiculate the price of each bond ( A,B, and C) at the end of each year until maturity, assuming interest rates remain constant, Round your answers to the nearest cent. Creuting a pranh showing the Eime puth of ateh bonde value