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Please Help With the Formulas IN Excel! Q5:BondE:12%Coupon-CompoundedSemiannually$100FACEValueYield10%28yearsuntilmaturityHoldingperiod12years a) What is the original price of the bond? b)Quantify the price and reinvestment risks for the
Please Help With the Formulas IN Excel!
Q5:BondE:12%Coupon-CompoundedSemiannually$100FACEValueYield10%28yearsuntilmaturityHoldingperiod12years a) What is the original price of the bond? b)Quantify the price and reinvestment risks for the holder of the bond if rates increase 1%. c) Quantify the net risk for the increasing rate scenario. d)Find the average annual holding period return under the scenario of interest rates increasing immediately and assuming any cash-flows received can be reinvest at the new interest rate. \begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Yield Increase } & \multicolumn{2}{c|}{ Yield Decrease } \\ \hline & Expected & Actual & Expected & Actual \\ \hline Coupon/period (\$) & & & & \\ \hline Maturity (periods) & & & & \\ \hline Yield/period & & & & \\ \hline Holding period & & & & \\ \hline Price & & & & \\ \hline Reinvestment & & & & \\ \hline HPR(total) & & & & \\ \hline HPR(effective, annual) & & & & \\ \hline HPR(BEY) & & & & \\ \hline Price (0) & & & & \\ \hline \end{tabular} Q5:BondE:12%Coupon-CompoundedSemiannually$100FACEValueYield10%28yearsuntilmaturityHoldingperiod12years a) What is the original price of the bond? b)Quantify the price and reinvestment risks for the holder of the bond if rates increase 1%. c) Quantify the net risk for the increasing rate scenario. d)Find the average annual holding period return under the scenario of interest rates increasing immediately and assuming any cash-flows received can be reinvest at the new interest rate. \begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Yield Increase } & \multicolumn{2}{c|}{ Yield Decrease } \\ \hline & Expected & Actual & Expected & Actual \\ \hline Coupon/period (\$) & & & & \\ \hline Maturity (periods) & & & & \\ \hline Yield/period & & & & \\ \hline Holding period & & & & \\ \hline Price & & & & \\ \hline Reinvestment & & & & \\ \hline HPR(total) & & & & \\ \hline HPR(effective, annual) & & & & \\ \hline HPR(BEY) & & & & \\ \hline Price (0) & & & & \\ \hline \end{tabular}Step by Step Solution
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