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please solve this in excel, with formulas showed The following information relates to Problems 1-3. An investor purchases a nine-year, 7% annual coupon payment bond
please solve this in excel, with formulas showed
The following information relates to Problems 1-3. An investor purchases a nine-year, 7% annual coupon payment bond at a price equal to face value. After the bond is purchased and before the first coupon is received, interest rates increase to 8%. The investor sells the bond after five years. Assume that interest rates remain unchanged at 8% over the five-year holding period 1) Per 100 of face value, the future value of the reinvested coupon payments at the end of the holding period is : Group of answer choices 40.255 42.520 42.021 41.066 2) The capital gain/loss per 100 of face value resulting from the sale of the bond at the end of the five-year holding period is: Group of answer choices 3.366 3.366 -3.312 3.312 3)--Assuming that all coupons are reinvested over the holding period, the annualized investor's five-year horizon yield (total return) is: Group of answer choices 37.754% p.a. 6.616% pa. 6.755% p.a. 3.312% na Step by Step Solution
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