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please i need to compare answer can i find help? We have also assumed that the first coupon payment column F of the spreadsheet above,
please i need to compare answer can i find help? We have also assumed that the first coupon payment column F of the spreadsheet above, with the resulting price, comes in exactly one period (either a year or a half-year). 87591% of tace value, appearing in cell F13 In other words, the settlement date is precisely at the begin-Excel also provides a function for yield to maturity. It is ning of the period. However, the PRICE function will make the necessary adjustments for intraperiod purchase dates =YIELD(settlement date, maturity date, annual coupon rate, bond price, redemption value as percent of face Suppose now that you wish to find the price of a 30-year maturity bond with a coupon rate of 6% (paid annually) sell- ing at a yield to maturity of 7%. You are not given a specific For example, to find the yield to maturity at our 725% bond settlement or maturity date. You can still use the PRICE func- we would use column B of the following spreadshoot if the tion to value the bond. Simply choose an arbitrary settlement coupons were paid annually. If the coupons were paid semi- date (January 1, 2000, is convenient) and let the maturity annually, we would change the entry for payments per year to date be 30 years hence. The appropriate inputs appear in 2 (see cell D8), and the yield would increase to 3.55%. value, number of coupon payments per year) Annual c Semiannual coupons 3 Sottiement date 4 Maturity date 5 Annual coupon rate 6 | Bond price% of face value) 5/15/2013 5/15/2016 0725 120.556 100 5/15/2013 5/15/2016 0.0725 120.556 100 Redemption value (of face value) 0.0350 0.0355 10 Yiel naturity d docimal) 12 13 14 The formula entered here is YIELD B3,84.85,86,87 88) excel Please give your olut ns to the following questions
please i need to compare answer can i find help?
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