Finance Homework on Excel

Question

  • ABC has issued a $1000 par bond with 25 years to maturity, 7% coupon rate, and semi-annual payments. Calculate the present value if the bond if the YTM is 7%.
  • How would the answer to #1 change if the YTM is 9%? 
  • How would the answer to #1 change if the YTM is 5%?
  • What bond relationship are Problems 1-3 discussing?
  1. ABC issued 12-year bonds at a coupon rate of 8%      with semi-annual payments. If the bond currently sells for $1050 of par      value, what is the YTM? What is the current yield?

     

  2. ABC issued 12-year bonds 2 years ago at a coupon      rate of 8% with semi-annual payments. If the bond currently sells for 105%      of par value, what is the YTM? What is the current yield?
  3. A bond has a quoted price of $1,080.42. It has a      face value of $1000, a semi-annual coupon of $30, and a maturity of five      years. What is the yield to maturity? What is the current yield?
  4. A bond has a quoted price of 90.52% of par value.      It has a face value of $1000, a semi-annual coupon of $30, and a maturity      of five years. What is the yield to maturity? What is the current yield?
  5. ABC issued 15-year bonds at a coupon rate of 3%      with semi-annual payments. If the bond currently sells for 112.5 percent      of par value, what is the YTM? What is the current yield?
  • ABC’s bonds have a 5.5% coupon and pay interest semi-annually. The bonds are currently selling for $1,150. The bonds mature in 20 years. The bonds can be called in 8 year for $1,100.
    • What is the yield to maturity?
    • What is the yield to call?
    • What is the current yield?
  1. ABC has $1,000 face value bonds outstanding. These      bonds pay interest semi-annually, mature in 10 years, and have a 7.5      percent coupon. The current price is quoted at 99.59 percent of par value.      What is the yield to maturity? What is the current yield?
  2. Refer to #1 above. Suppose the bonds are callable      in 5 years at 105 percent of par value, what is the yield-to-call?
  3. ABC’s bonds have a 9.5 percent coupon and pay      interest semi-annually. Currently, the bonds are quoted at 106.315 percent      of par value. The bonds mature in 12 years. What is the yield to      maturity? What is the current yield?
  4. Refer to #3 above. Suppose the bonds are callable      in 5 years at 110 percent of par value, what is the yield-to-call?

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