Question
Task 1 Determine the price of a bond with principal 100 that pays a coupon rate of 5 %. The yield is 4.3 %. Today
Task 1 Determine the price of a bond with principal 100 that pays a coupon rate of 5 %. The yield is 4.3 %. Today is Dec 17th, 2016; maturity is Dec 17th, 2021. Use two different ways: (1.1) Tabulate the cash flows and the discount factors in the worksheet and sum the PVs of the cash flows. (1.2) Use the Excel function PRICE() Task 2 Repeat Task 1 with the date "today" changed to August 2nd, 2016. Task 3 Determine the yield of a bond. The principal is 100, coupon rate is 4 %. Today's price is 98.5. Today is August 2nd, 2016; maturity is Dec 17th, 2021. Use two different ways: (3.1) Tabulate the cash flows and the discount factors and use Excel's GoalSeek. (3.2) Use the Excel function YIELD()
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