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thats the whole question Excel Activity: Bond Valuation Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate

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thats the whole question
Excel Activity: Bond Valuation Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: - Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 foce value, - Bond B has an 8% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has a 12% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. If an answer is zero, enter " 0 ". a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. b. Calculate the price of each of the three bonds. Round your answers to the nearest cent. Price ( Bond A):$ Price ( Bond B): $ Price (Bond C): $ c. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places, Current yleld (Bond A): Current yield (Bond B): Current yield (Bond C): What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places. e. Mr. Clark is considering another bond, Bond D. It has a 7% semiannual coupon and a $1,000 face value (i.e.4. It pays a $35 coupon every 6 months). Bond D is scheduled to mature in 8 years and has a price of $1,140. It is also callable in 6 years at a call price of $1,080. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places. %0 2. What is the bond's nominal yield to call? Round your answer to two decimal places. 3. If Mr. Clark were to purchase this bond, would he be more likely to receive the yleld to maturity or yield to call? Explain your answer. Because the YTM is the rTc, Mr, Clark expect the bond to be called. Consequentiy, he would earn

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