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Please show all work in excel! THANKS! :) Q1. Western Digital has issued a bond with a par value of $1,200 each and a 5.25%
Please show all work in excel! THANKS! :)
Q1. Western Digital has issued a bond with a par value of $1,200 each and a 5.25% per year coupon. The bonds mature in 8 years and pay interest annually. What is the current value of the bond if the market interest rate is 6.0% ? Q2. Find the present value of a 6-year zero-coupon bond with a $2,000 par value. Assume the annual market interest rate is 10%. Q3. A $1,000 face value bond has a 6.0% coupon and pays interest annually. The bond matures in 4 years, and the annual market interest is 3%. What is the Macaulay duration? Q4. You write (short) a call option on Tesla stock with an exercise price of $270. The option expires after one month. Assume the option premium is $20. a. What is the profit on this option if the stock price is $320 at expiration? b. What is the payoff of this option if the stock price is $245 at expiration? Q5. You write (short) a put option on Tesla stock with an exercise price of $270. The option expires after one month. Assume the option premium is $22. a. What is the profit on this option if the stock price is $300 at expiration? b. What is the payoff of this option if the stock price is $245 at expiration? Q6. Assume the following: 1. You want to buy a one-year call option on a stock with a strike price of $25. 2. The current price per share of the stock is $23. 3. The stock does not pay a dividend. 4. The risk-free rate is 2.5% per year. 5. The price of a put with the same strike price of $25 is currently $5. Using the put-call parity, what should be the price of the callStep by Step Solution
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