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please show excel formulas and resolution! thanks! 7-42 Spreadsheet Problem You have a portfolio of three bonds. The long bond will mature in 19 X
please show excel formulas and resolution! thanks!
7-42 Spreadsheet Problem You have a portfolio of three bonds. The long bond will mature in 19 X years and has a 5.5% coupon rate. The midterm bond matures in 9 years and has a 6.6% coupon rate. The short bond matures in only 2 years and has a 4% coupon rate. a. Construct a spreadsheet that shows the value of these three bonds and the portfolio when the discount rate is 5%. The spreadsheet can look something like this: A B D E 1 Now Change to 2 Interest rate = 5.00% 5.50% 3 Bonds Bond Price Now Price After Change Change in $ Change in % 4 Long bond 5 Midterm bond 6 Short bond 7 Total = $0.00 $0.00 b. Illustrate what happens when the discount rate increases by 0.5%. What do you notice about the changes in price between the three bonds? c. Show the bond prices when the discount rate decreases by 0.5% from the discount rate in part a. What do you notice about the price change between parts b and c
please show excel formulas and resolution!
thanks!
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