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show me the function Accessionity to summary: Given information for this question is presented in rows 2 through 8. Requirement B C D E G
show me the function
Accessionity to summary: Given information for this question is presented in rows 2 through 8. Requirement B C D E G H 1 2 3 4 Years to Maturity 2 5 Coupon Rate 0.02 6 Coupons per Year 1 7 Par Value ($) $1,000 0.02 8 Yield to Maturity (t-0) 9 10 Required: 11 Treasury Inflation Protected Securities' (TIPS) principal and interest adjust to inflation. Discover the mechanics by filling in the table below. 12 Solve for the inflation adjusted par value and interest payments as well as the nominal and real rates of return. 13 14 (Use cells A4 to B8 from the given information to complete this question.) 15 Interest Nominal Return (%) Real Return. (%) 16 Time Inflation Rate Par Value ($) Payment ($) 1 0.03 2 0.05 678922 17 18 19 20 21 Consider the following TIPS: quuna piccine I TUWS & unough 8. Requireme F G H A D E 1 2 Bond Characteristics 3/15/2021 3 Settlement date Maturity date 4 11/14/2025 5 Annual coupon rate 0.04 6 Yield to maturity 0.0175 7 Redemption value (%) 100 8 Coupon Payments per Year 1 2 9 10 Required: 11 Calculate first the flat price of the bond, without any accrued interest. Then calculate days since the last coupon payment and the days in a payment 12 period. Use these two calculations to determine accrued interest. Finally, determine the invoice price based on the flat price and accrued interest. 13 14 (Use cells A3 to C8 from the given information to complete this question.) 15 Bond A Bond B 16 110.03 17 109.99 Flat price (% of par) 121 121 18 Days since last coupon 365 181 19 Days in coupon period 1.33 1.34 20 Accrued interest (% of par) 111.31 111.37 21 Invoice price (% of par) 22 B Bond A C Bond B 3/15/2021 11/14/2025 0.04 0.0175 100 Step by Step Solution
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