two questions. I need process and solution.

9:30 AD719_PS1_template(1).xlsx Lowowo w White honen beheren Tre periode Paris - hationen Corrent Send nad 10 3. Bendran US Date of the band's het her OPINI Claw.concede e Act Calle Duty Price usbord can Flu Pion tnaratis treesaratta -) paper ty the peaf Tue is TTN - 14 *Tulaa pay pot malattamaitera mprapatis? Art atana nalhat aiaya rarest area than any that Area tra pose. You can LA PA ENAPNALAN ters 0 is tr 147, CNCY - tamil - 13. RCY - Pa Prahasrar Capa Da use to enter port and thes to cater and a peeings haraa usa= Tasalis - ariaral pathete "*" at the remaits - free porn Content - tana Bawah - NEE - -- 4 Drin aanenerator an I 83 84 85 Part2: Realized Compound Yield (RCY] 86 87 16. a) in the previous section of this problem set explain why the calculated YTM of a bond could be a bad 88 characterization inaccurate) of the rate of return of a bond investment 89 Re your retten in the box below 90 Now we reconsole border solen meer of 91 what were made on the Weted cabuto 92 93 94 95 96 b) If YTM is a potentially bad method of calculation of a bond's rate of what other method of calculation 07 is more appropriate? And why is this method always correct (accurate) 98 your respondente de 09 Wir ne teatre Com CY 100 Carrow Hum/ 101 102 103 104 105 106 c) Are there any bad assumptions made in the calculation of the YTM of zero-coupon bonds 107 wany od Mamonde ? www.pro 108 100 110 111 17. 3 years ago, you acquired a 10-year 0% coupon, 51.000 face value bond at a YTM of 6%. Today, you sold 112 this bond at a YTM of 3% Calculate your annualed Horizon Yield (HY 113 3 years ago, you acquired a 10-year 0% coupon $1,000 face value band at a YTM of 6%. Today, you sold this bond at a YTM of 3% Calculate your annualized Honicon Yield HY a) Assuming annual compounding, show your work below 109 110 111 17 112 113 114 115 116 117 118 119 120 121 122 123 b) Assuming semi-annual compounding, show your work below Bonds of RCY Corporation with a face value of $1,000 sels for $975, mature in 5 years, and have a 5% coupon rate paid semiannually. Calculate the investor's RCY by assuming the following Bond sold to yield at 5% and the end of the 3-year holding period Reinvestment rate 4% APR during this holding period - PS state what assumption(s) you need to make palculating the RCY 125 18. 125 127 128 199 130 131 132 133 134 135 136 127 130 130 140 141 142 b) Bretly explain in the space below why there are potentially two answers to the RCY calculation Part3: Pricing Bonds in Between Coupon Dates Part3: Pricing Bonds In Between Coupon Dates 140 141 142 143 19 144 145 146 147 148 149 150 151 152 Up to this point this point, we have learned how to calculate bond prices occuring on coupon dates we can conveniently input regral number of periods in our financial calculator or spreadsheet What if the transaction date fails on a date in-between two coupon dates. There will be complications Fractional periods W will be needed to calculate the price (NPV) of the bond Partial ownership of next coupon the seller and the buyer will own complementary fractional value of the next coupon Consider the following bond - Bond issued on 01/01/2015 20-year maturity, face value $1,000, coupon rate 3% semi-annual coupons Bond transacted on 03/01/2022 at a bond market rate of 5% Use 30/360 day count convention, le 30 days in each month, 12 months in each you 154 155 156 157 158 159 160 161 162 163 164 105 106 16/ 10 100 170 17 172 a) Draw a timeline of the band's cash flow and label with the following dates issued previous coupon IP. transaction next coupon IN, mutty Issued Previo Tanced Melity Dale Coupon Da CON De 2 1 ***** Cp Then an b) Calculate 'w' the fractional period between transacted date and the need coupon date rain Calculate the crved forestal A B 0 G 1 3 he bi Calouste "w.the fractional period between transacted date and the next coupon date 103 164 185 188 167 168 169 170 175 172 173 174 175 c) Catulate the Accrued Interest Al 176 Calculate the Dirty Full Price of this bond 177 178 179 180 181 TR2 183 184 185 100 187 10 189 190 101 102 03 104 105 100 e Calculate the Clean FlatPrice of this bond ES The You should ATT 0.000 PUT 116 1000 PVT 12 este 03 Cew na 1.000 13 Ce who de 100 YTM PUT PV santala 136 Caled e tyre YTM Bonde Cute Cal VTC)20 aprend with 51.000 Thisted was readers of VTC PV PMI PV ) Wycan YTM borde med Gior why the bond VTC is a YIM PARC YETI 9:30 AD719_PS1_template(1).xlsx Lowowo w White honen beheren Tre periode Paris - hationen Corrent Send nad 10 3. Bendran US Date of the band's het her OPINI Claw.concede e Act Calle Duty Price usbord can Flu Pion tnaratis treesaratta -) paper ty the peaf Tue is TTN - 14 *Tulaa pay pot malattamaitera mprapatis? Art atana nalhat aiaya rarest area than any that Area tra pose. You can LA PA ENAPNALAN ters 0 is tr 147, CNCY - tamil - 13. RCY - Pa Prahasrar Capa Da use to enter port and thes to cater and a peeings haraa usa= Tasalis - ariaral pathete "*" at the remaits - free porn Content - tana Bawah - NEE - -- 4 Drin aanenerator an I 83 84 85 Part2: Realized Compound Yield (RCY] 86 87 16. a) in the previous section of this problem set explain why the calculated YTM of a bond could be a bad 88 characterization inaccurate) of the rate of return of a bond investment 89 Re your retten in the box below 90 Now we reconsole border solen meer of 91 what were made on the Weted cabuto 92 93 94 95 96 b) If YTM is a potentially bad method of calculation of a bond's rate of what other method of calculation 07 is more appropriate? And why is this method always correct (accurate) 98 your respondente de 09 Wir ne teatre Com CY 100 Carrow Hum/ 101 102 103 104 105 106 c) Are there any bad assumptions made in the calculation of the YTM of zero-coupon bonds 107 wany od Mamonde ? www.pro 108 100 110 111 17. 3 years ago, you acquired a 10-year 0% coupon, 51.000 face value bond at a YTM of 6%. Today, you sold 112 this bond at a YTM of 3% Calculate your annualed Horizon Yield (HY 113 3 years ago, you acquired a 10-year 0% coupon $1,000 face value band at a YTM of 6%. Today, you sold this bond at a YTM of 3% Calculate your annualized Honicon Yield HY a) Assuming annual compounding, show your work below 109 110 111 17 112 113 114 115 116 117 118 119 120 121 122 123 b) Assuming semi-annual compounding, show your work below Bonds of RCY Corporation with a face value of $1,000 sels for $975, mature in 5 years, and have a 5% coupon rate paid semiannually. Calculate the investor's RCY by assuming the following Bond sold to yield at 5% and the end of the 3-year holding period Reinvestment rate 4% APR during this holding period - PS state what assumption(s) you need to make palculating the RCY 125 18. 125 127 128 199 130 131 132 133 134 135 136 127 130 130 140 141 142 b) Bretly explain in the space below why there are potentially two answers to the RCY calculation Part3: Pricing Bonds in Between Coupon Dates Part3: Pricing Bonds In Between Coupon Dates 140 141 142 143 19 144 145 146 147 148 149 150 151 152 Up to this point this point, we have learned how to calculate bond prices occuring on coupon dates we can conveniently input regral number of periods in our financial calculator or spreadsheet What if the transaction date fails on a date in-between two coupon dates. There will be complications Fractional periods W will be needed to calculate the price (NPV) of the bond Partial ownership of next coupon the seller and the buyer will own complementary fractional value of the next coupon Consider the following bond - Bond issued on 01/01/2015 20-year maturity, face value $1,000, coupon rate 3% semi-annual coupons Bond transacted on 03/01/2022 at a bond market rate of 5% Use 30/360 day count convention, le 30 days in each month, 12 months in each you 154 155 156 157 158 159 160 161 162 163 164 105 106 16/ 10 100 170 17 172 a) Draw a timeline of the band's cash flow and label with the following dates issued previous coupon IP. transaction next coupon IN, mutty Issued Previo Tanced Melity Dale Coupon Da CON De 2 1 ***** Cp Then an b) Calculate 'w' the fractional period between transacted date and the need coupon date rain Calculate the crved forestal A B 0 G 1 3 he bi Calouste "w.the fractional period between transacted date and the next coupon date 103 164 185 188 167 168 169 170 175 172 173 174 175 c) Catulate the Accrued Interest Al 176 Calculate the Dirty Full Price of this bond 177 178 179 180 181 TR2 183 184 185 100 187 10 189 190 101 102 03 104 105 100 e Calculate the Clean FlatPrice of this bond ES The You should ATT 0.000 PUT 116 1000 PVT 12 este 03 Cew na 1.000 13 Ce who de 100 YTM PUT PV santala 136 Caled e tyre YTM Bonde Cute Cal VTC)20 aprend with 51.000 Thisted was readers of VTC PV PMI PV ) Wycan YTM borde med Gior why the bond VTC is a YIM PARC YETI