Question
Using the financial functions of Excel and/or the formulas for bonds, solve each of the problems. A 25 year, 5% semiannual coupon bond has just
Using the financial functions of Excel and/or the formulas for bonds, solve each of the problems.
A 25 year, 5% semiannual coupon bond has just been issued. It has a par value of $5,000 and may be called in 10 years at a call price of $6,000. The bond sells for $5,250. Complete the information in the table below.
| Bond Information | ||
| Years to maturity: | 25 | |
| Periods per year: | 2 | |
| Periods to maturity: | ||
| Coupon rate: | 5% | |
| Par value: | $5,000 | |
| Periodic payment: | ||
| Current price | $5,250 | |
| Call price: | $6,000 | |
| Years till callable: | 10 | |
| Periods till callable: | ||
Based on the bond information above, calculate the following information:
| Periodic Yield to Maturity = | Use the RATE function of Excel | |||||
| Annualized Nominal Yield to Maturity = | This is a nominal rate | |||||
| Annual Coupon Rate = | ||||||
| Current yield = | ||||||
| Capital Gain/loss yield = | ||||||
| Periodic Yield to Call = | Use the RATE function of Excel | |||||
| Annualized Nominal Yield to Call = | This is a nominal rate | |||||
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Hotel Finance
Authors: Anand Iyengar
1st Edition
0195694465, 978-0195694468
