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PLEASE USE INCLUDED TEMPLATE AND SHOW FORMULAS IN EXCEL! THANK YOU! Bond Valuation Given the purchase prices, coupons and maturities of four bonds, calculate the
PLEASE USE INCLUDED TEMPLATE AND SHOW FORMULAS IN EXCEL! THANK YOU!
Bond Valuation Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000 par value. Bonds A, B, and C are semi-annual. Bond D is a zero but calculate its yield with a semi- annual equivalency. Provide your answers to 4 significant digits (example: 6.1234%) Bond A B D Price 604.00 780.00 1,001.00 455.00 Annual Coupon 2.2% 2.4% 2.8% Maturing in 8 years 9 years 10 years 10 years B D E A B D 604.00 780.00 1,001.00 455.00 2 3 4 5 6 YTM Start 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 8 1 5.0 1 3 1 4 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0Step by Step Solution
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