Question

A 9.3 percent coupon (paid semiannually) bond, with a $1,000
face value and 18 years remaining to maturity. The bond is selling
at $970. An 8.3 percent coupon (paid quarterly) bond, with a $1,000
face value and 10 years remaining to maturity. The bond is selling
at $900. An 11.3 percent coupon (paid annually) bond, with a $1,000
face value and 6 years remaining to maturity. The bond is selling
at $1,050. Round your answers to **3 decimal
places!!!!**. (e.g., 32.161))

--> yield to maturity (%per year)

Answer #1

FV | 1000 | ||

PMT | 46.5 | =1000*9.3%/2 | |

NPER | 36 | (18 x 2) | |

PV | 970 | ||

Rate(YTM) | 9.655% | ||

=RATE(36,46.5,-970,1000)*2 | |||

FV | 1000 | ||

PMT | 20.75 | =1000*8.3%/4 | |

NPER | 40 | (10 x 4) | |

PV | 900 | ||

Rate(YTM) | 9.886% | ||

=RATE(40,20.75,-900,1000)*4 | |||

FV | 1000 | ||

PMT | 113 | =1000*11.3% | |

NPER | 6 | ||

PV | 1050 | ||

Rate(YTM) | 10.147% | ||

=RATE(6,113,-1050,1000) | |||

Note: I have tried my best for correct solution and work , still you need any further help, please ask in comment and don’t forget to rate positively. |

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