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Use this protocol for your answers to #1-#6: Use a $ for all of these dollar values. Use a comma for all dollar values in
Use this protocol for your answers to #1-#6: Use a $ for all of these dollar values. Use a comma for all dollar values in excess of $999. Round off all values to two decimal places. For problems #1 to #3, consider a Weyland Corp. bond that has a face value (FV) of $1000, will mature in eight years, and has an annual coupon of $68. The market rate of interest is 5.9%. For problems #4-#7, consider a Yutani Corp. bond with FV=$1000, maturity = 2024 (March), C=$61 and i=7.25%. 5. What is the present value of just the one coupon that will be redeemed at the maturity of the Yutani bond (in March 2024) three years from now? 6. If the Fed jumps into the bond market, even though it just buys U.S. Treasuries, it will affect all interest rates to some extent. If they sell lots of bonds and interest rates rise to 7.8%, what will be the new price of the Yutani bond? 7. Suppose that you own the Yutani bond. Given what happened in problem #6, how do you feel? Type in either "happy" or "sad" with no capitals, no punctuation, no spaces. Use this protocol for your answers to #1-#6: Use a $ for all of these dollar values. Use a comma for all dollar values in excess of $999. Round off all values to two decimal places. For problems #1 to #3, consider a Weyland Corp. bond that has a face value (FV) of $1000, will mature in eight years, and has an annual coupon of $68. The market rate of interest is 5.9%. For problems #4-#7, consider a Yutani Corp. bond with FV=$1000, maturity = 2024 (March), C=$61 and i=7.25%. 5. What is the present value of just the one coupon that will be redeemed at the maturity of the Yutani bond (in March 2024) three years from now? 6. If the Fed jumps into the bond market, even though it just buys U.S. Treasuries, it will affect all interest rates to some extent. If they sell lots of bonds and interest rates rise to 7.8%, what will be the new price of the Yutani bond? 7. Suppose that you own the Yutani bond. Given what happened in problem #6, how do you feel? Type in either "happy" or "sad" with no capitals, no punctuation, no spaces
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