The following information is collected from http://reports.finance.yahoo.com as of 2-Dec- 2010. Use it to answer the next two questions. Assume that both bonds have a dollar face value of $1,000, but quotes are on the basis of 100. Bond Center HOME DEPOT INC SHREVEPORT LA OVERVIEW HSG AUTH MTG REV Price ? 93.14 Coupon (%) 5.400 6.100 Maturity Date 1-Mar-2016 1-Aug-2019 Yield to Mat (%) 2.288 ? Current Yield (%) 4.683 6.550 Fitch Ratings BBB BB Coupon Payment Freq Semi-Annual Semi-Annual Callable No Yes Q1. Determine the price of the Home Depot Inc. bond assuming that it matures in 5.25 years. (Convert $ price to quote based on face value of 100 as last step in the answer.) Note: Where relevant, present value answers should be shown as a negative number. Place the appropriate values in the proper cells in row 3, given the columns as provided below. Provide the EXACT Excel function using cell references throughout. Row Column Number A B E 1 Home Depot Coupon Bond Price D F Q1. m Con Rate PMT #Yrs Ann Rate PV FV 2 3 EXACT EXCEL FUNCTION: The Yahoo Finance price quote would be: Q2. Calculate the yield-to-maturity on the Shreveport LA Housing Authority Revenue bond assuming that it matures in 9.67 years. Place the appropriate values in the proper cells in row 7, given the columns as provided below. Provide the EXACT Excel function using cell references throughout. F Row Number 5 6 7 Q2. m B Shreveport LA Column C D Coupon Bond YTM Ann Rate PV E Cpn Rate PMT #Yrs FV EXACT EXCEL FUNCTION: Exact Equation to Calculate PMT: The following information is collected from http://reports.finance.yahoo.com as of 2-Dec- 2010. Use it to answer the next two questions. Assume that both bonds have a dollar face value of $1,000, but quotes are on the basis of 100. Bond Center HOME DEPOT INC SHREVEPORT LA OVERVIEW HSG AUTH MTG REV Price ? 93.14 Coupon (%) 5.400 6.100 Maturity Date 1-Mar-2016 1-Aug-2019 Yield to Mat (%) 2.288 ? Current Yield (%) 4.683 6.550 Fitch Ratings BBB BB Coupon Payment Freq Semi-Annual Semi-Annual Callable No Yes Q1. Determine the price of the Home Depot Inc. bond assuming that it matures in 5.25 years. (Convert $ price to quote based on face value of 100 as last step in the answer.) Note: Where relevant, present value answers should be shown as a negative number. Place the appropriate values in the proper cells in row 3, given the columns as provided below. Provide the EXACT Excel function using cell references throughout. Row Column Number A B E 1 Home Depot Coupon Bond Price D F Q1. m Con Rate PMT #Yrs Ann Rate PV FV 2 3 EXACT EXCEL FUNCTION: The Yahoo Finance price quote would be: Q2. Calculate the yield-to-maturity on the Shreveport LA Housing Authority Revenue bond assuming that it matures in 9.67 years. Place the appropriate values in the proper cells in row 7, given the columns as provided below. Provide the EXACT Excel function using cell references throughout. F Row Number 5 6 7 Q2. m B Shreveport LA Column C D Coupon Bond YTM Ann Rate PV E Cpn Rate PMT #Yrs FV EXACT EXCEL FUNCTION: Exact Equation to Calculate PMT