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please show all work in EXCEL! will upvote once everything is answered. thank you!! please solve in EXCEL! 1) On Aug 15th,2016, you are offered
please show all work in EXCEL! will upvote once everything is answered. thank you!! please solve in EXCEL!
1) On Aug 15th,2016, you are offered the following bond: - Face value \$250 (par value) - Coupon rate 7\% - Coupon frequency semiannual (8/15&2/15) - Maturity date Aug 15, 2058 - First call date February 15, 2027 - Call premium 3% of the face value - Bond current market price $300 a) What is the yield to maturity? b) What is the Yield to Call? c) What is the current yield? 2) As an investor, you are considering buying a bond that pays 7% semiannual coupon. This bond has a $10,000 face value and will mature in 25 years. If your required rate of return is 5.8% for bonds in this risk class, what is the highest price you would be willing to pay? Bonus: Referring to problem 2, Assuming required rate of return remains at 5.8%. What would you expect the price of this bond to be in 4 years? Make sure to highlight and label each of your final answers for both problems Step by Step Solution
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