Question

Please show how to solve using EXCEL ONLY

**EXCEL INSTRUCTIONS ONLY**

**8.** David Hoffman purchases a $1,000 20‐year
bond with an

8 percent coupon rate (annual payments). Yields on comparable

bonds are 10 percent. David expects that, 2 years from

now, yields on comparable bonds will have declined to 9
percent.

Find his expected yield, assuming the bond is sold

in 2 years.

Answer #1

Below is the excel workings:

please rate.

Please show how to solve using EXCEL ONLY.
10. Calculate the duration of a $1,000, 12‐year
zero coupon
bond using annual compounding and a current market rate
of 9 percent.
12. Calculate the duration for a $1,000, 4‐year
bond with a
4.5 percent annual coupon, currently selling at par. Use the
bond’s duration to estimate the percentage change in the
bond’s price for a decrease in the market interest rate to
3.5 percent. How different is your answer from the...

PLEASE SHOW HOW TO SOLVE THE PROBLEMS! Will give you a good
rating if done properly :)
1. Zero coupon bonds: Diane Carter is
interested in buying a five-year zero coupon bond whose face value
is $1,000. She understands that the market interest rate for
similar investments is 9 percent. Assume annual coupon payments.
What is the current value of this bond?
2. Zero coupon bonds: Ten-year zero coupon
bonds issued by the U.S. Treasury have a face value of...

1. Please watch these videos on bonds, TeachMeFinance Bond
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to maturity of 7.5 percent, and 10 years until maturity. Assuming
semi-annual coupon payments:
a. What is the bond’s coupon payment per period?
b. What is the bond’s price?
c. If the bond were selling for $929,...

Solve using excel
A bond was originally bought at a price of $985 dollars is now
sold for $1000.
The investor realized a holding period rate of return of 5%.
1. What was total amount of the bond's coupon payments received
during bond ownership?
2. How many coupon payments did the bond investor receive?
A. 1
B. 2
C. 3
D. You cannot tell with the info given

Solve using excel
SHOES "R" US has bonds on their balance sheet in the amount of
$5,000,000 in book value. Those bonds mature
in six years. The Company is thinking of buying the bonds back now
because yields are 3% while their bond pays 7%
annually.
1. What should be the price in the market of 1 SHOES "R" US bond
today?
2. How much money would SHOES "R" US need to raise to return the
entire amount of bonds...

Please answer the 8 questions. Thank you!
1. Cullumber, Inc., has issued a three-year bond that pays a
coupon rate of 9.4 percent. Coupon payments are made semiannually.
Given the market rate of interest of 4.0 percent, what is the
market value of the bond? Round answer to 2 decimal places
2. Ten-year zero coupon bonds issued by the U.S. Treasury have a
face value of $1,000 and interest is compounded semiannually. If
similar bonds in the market yield 11.6...

PLEASE SOLVE USING EXCEL AND SHOW FORMULAS
Gronseth Drywall Systems, Inc., is in discussions with its
investment bankers regarding the issuance of new bonds. The
investment banker has informed the firm that different maturities
will carry different coupon rates and sell at different prices. The
firm must choose among several alternatives. In each case, the
bonds will have a $1000 par value and flotation costs will be $40
per bond. The company is taxed at 25%. Use the approximation
formula...

Solve the problems below using well-formatted
Excel solutions. Do not hardcode numbers in the formulas…..only use
cell references to the input data. I will change the input data in
your problem to check alternate solutions. You will turn in a
complete working Excel spreadsheet with your solution.
1) What is the price of a
semiannual $1,000 par value bond with four years left until
maturity that pays a coupon of 3.75% and is yielding 5.25%? What
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Show how to solve via excel spreadsheet please
A mechanical engineering graduate who wanted to have his own
business borrowed $350,000 from his father as start-up money.
Because he was family, his father charged interest at only 4% per
year. If the engineer was able to pay his father $15,000 in year 1,
$36,700 in year 2, and amounts increasing by $21,700 each year, how
many years did it take for the engineer to repay the loan?

Can you please show this in excel with formulas? And with
showing where each # is derived from?
Ying Import has several bond issues outstanding, each making
semiannual interest payments. The bonds are listed in the table
below.
Bond
Coupon Rate
Price Quote
Maturity
Face Value
1
8.90
%
105.4
3
years
$
24,000,000
2
6.60
95.0
6
years
44,000,000
3
8.60
104.2
13.5
years
49,000,000
4
9.10
106.1
23
years
64,000,000
If the corporate tax rate is 35 percent,...

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