Use excel to solve and find the formula to help find the solutions for the following problems.
1 . Assumes Venture Healthcare sold bonds that have a ten - year maturity , a 12 percent coupon rate* with annual payments , and a $1, 0.00 par value . What would be the bonds value ? Hint : Watch the Homework Hint video to figure out how to calculate this using Excel . 2 . Assume that two years after the Venture Healthcare bonds ( ten - year maturity , a 12 percent coupon rate with annual payments , and a $1 , 000 par value ) were issued , the required interest rate* fell to 7%6 . What would be the bands value ? Hint : Watch the Homework Hint video to figure out how to calculate this using Excel . 3. Assume that two years after the Venture Healthcare bonds ( ten - year maturity , a 12 percent coupon rate with annual payments , and a $1 , 000 par value ) were issued , the required interest rate fell to 13% . What would be the bonds value ? Hint : Watch the Homework Hint video to figure out how to calculate this using Excel . 4. Tidewater Home Health Care , Inc ., has a bond issue outstanding with eight years remaining to maturity , a coupon rate of 10% with interest paid annually , and a par value of $ 1, 000 . The Current market price of the bonds is $1, 251. 22. What is the bond's yield to maturity ? 5. Tidewater Home Health Care , Inc ., has a bond issue outstanding with eight years remaining to maturity , a coupon rate of 10% with interest paid semi- annually , and a par value of $ 1. 090 . The current market price of the bonds is $1, 251.22 . What is the bond's yield to maturity ? Remember to multiple the answer by two to put it in the stated annual rate .6 . Minneapolis Health System has bonds outstanding that have four years remaining to maturity , a coupon interest rate of 9% paid annually , and a $ 1, 000 par value . What is the yield to maturity on the issue if the current market price is $829 ?' 7 . Minneapolis Health System has bonds outstanding that have four years remaining to maturity , a coupon interest rate of 9%/ paid annually , and a $ 1 , 000 par value . What is the yield to maturity on the issue if the current market price is $ 1, 104 ?) 8 . Minneapolis Health System has bonds outstanding that have four years remaining to maturity , a coupon interest rate of 9% paid annually , and a $ 1 . 000 par value . Would you be willing to buy one of these bonds for $829 if you required a 12% rate of return on the issue ? 9. Regal Health Plans issued a 12% annual coupon bond with a $1 , 000 par value a few years ago . The bond now has ten years remaining to maturity and sells for $ 1 , 100 . The bond has a call provision that allows Regal to call the bond in four years at a call price of $1, 060 . What is the bond's yield to maturity ?" 10 . Regal Health Plans issued a 12% annual coupon bond with a $1 , 000 par value a few years ago . "The bond now has ten years remaining to maturity and sells for $ 1 , 100 . The bond has a call provision that allows Regal to call the band in four years at a call price of $1, 060 . What is the bond's yield to call ?"
