Please Solve using EXCEL. The correct answers are listed. An investor is considering the following bonds. The bonds pay interest annually.

A: $1000 par value bond with 5 years to maturity paying a 3% coupon. The bond has a yield to maturity of 6%.

B: $1000 par value bond with 7 years to maturity paying a 5.9% coupon. The bond has a yield to maturity of 3.4%.

C: $2500 par value bond with 30 years to maturity paying 2.7% coupon. The bond has a yield to maturity of 2.3%

What is the current market price of these bonds? What is their current yield? What is their capital gains yield?

Solution:	Market P	Current Y	Cap Gains Y
A	873.63	3.43%	2.57%
B	1,153.44	5.12%	-1.72%
C	2,715.00	2.49%	-0.19%

If interest rates suddenly rose by 1%, what is the new market price for each bond? What is the % change in market value?

Solution:	New P	% Change
A	835.99	-4.31%
B	1,088.71	-5.61%
C	2,217.07	-18.34%