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Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74. Complete the steps below using cell references to
Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. * What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be? 10 $ Maturity (years) Face value Coupon rate Bond price 1,000 8% 1,034.74 $ What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? Coupon Number of periods Yield to maturity b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be? Yield to maturity 9% Semiannual yield Bond price
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