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...

Instructions: You are required to use a financial calculator or
spreadsheet (Excel) to solve the problems (provided on page 4)
related to risk and return characteristics and stock/bond
valuation. You are required to show the following three steps for
each problem (sample problems and solutions are provided for
guidance):
(i) Describe and interpret the assumptions related to the
problem.
(ii) Apply the appropriate mathematical model to solve the
problem.
(iii) Calculate the correct solution to the problem.
A company’s non-callable...

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
Valuation (3:59) and Calculating YTM in EXCEL and TI w/ Bionic
Turtle (8:57), and answer the following questions: A $1,000 par
value bond, has an annual coupon rate of 6 percent, an annual yield
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,...

Instructions: You are required to use a financial calculator or
spreadsheet (Excel) to solve the problems (provided on page 4)
related to risk and return characteristics and stock/bond
valuation. You are required to show the following three steps for
each problem (sample problems and solutions are provided for
guidance):
(i) Describe and interpret the assumptions related to the
problem.
(ii) Apply the appropriate mathematical model to solve the
problem.
(iii) Calculate the correct solution to the problem.
A firm has...

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

****PLEASE SHOW IN EXCEL***
2.
Xerox Corporation issues a 4 percent coupon bond with 28 years
maturity, $1,000 face (par) value, and semi-annual coupon payments.
If the current market price of this bond is $1271, find its yield
to maturity.
A.
5.97%
B. 2.05%
C. 2.63%
D. 4.31%
E. none of the answers is correct

****PLEASE SHOW IN EXCEL***
1.
Boeing Corporation issues a 3 percent coupon bond with 13 years
maturity, $1,000 face (par) value, and semi-annual payments. If the
yield to maturity of this bond is 7 percent, find the bond's
price.
A. $388.49
B. $582.73
C. $529.75
D. $662.19
E. none of the answers is correct

****PLEASE SHOW IN EXCEL***
4.
Johnson Jay Inc. issues a 9 percent coupon bond with 24 years
maturity, $1,000 face (par) value, and semi-annual coupon payments.
If the current market price of this bond is $751, find its yield to
maturity.
A. 12.23%
B. 8.34%
C. 12.95%
D. 7.98%
E. none of the answers is correct

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...

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