A B C 2 Consider the following newly issued bonds: A coupon bearing bond, a zero coupon bond, and a perpetuity. 3 4 D E 56789 10 Inputs Settlement Date Maturity Date Coupon Rate Face Value Coupons per Year Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond 01-01-2020 01-01-2040 0.020 100 2 01-01-2020 01-01-2040 0 100 2 01-01-2020 Indefinite/Infinite 0.025 100 1 TT 12 Yield ET Market Data 0.075 14 Required: 15 16 Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the Modified Duration. 17 (Use cells A5 to D12 from the given information to complete this question.) 18 19 20 Price 21 Macaulay Duration 22 Modified Duration Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond 23
A B C 2 Consider the following newly issued bonds: A coupon bearing bond, a zero coupon bond, and a perpetuity. 3 4 D E 56789 10 Inputs Settlement Date Maturity Date Coupon Rate Face Value Coupons per Year Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond 01-01-2020 01-01-2040 0.020 100 2 01-01-2020 01-01-2040 0 100 2 01-01-2020 Indefinite/Infinite 0.025 100 1 TT 12 Yield ET Market Data 0.075 14 Required: 15 16 Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the Modified Duration. 17 (Use cells A5 to D12 from the given information to complete this question.) 18 19 20 Price 21 Macaulay Duration 22 Modified Duration Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond 23
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Please provide answer in excel format
Please provide detailed solution and give the explanation of the concept
Transcribed Image Text:A
B
C
2
Consider the following newly issued bonds: A coupon bearing bond, a zero coupon bond, and a perpetuity.
3
4
D
E
56789
10
Inputs
Settlement Date
Maturity Date
Coupon Rate
Face Value
Coupons per Year
Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond
01-01-2020
01-01-2040
0.020
100
2
01-01-2020
01-01-2040
0
100
2
01-01-2020
Indefinite/Infinite
0.025
100
1
TT
12 Yield
ET
Market Data
0.075
14 Required:
15
16
Using any necessary data above, calculate the Macaulay Duration of each bond. Then, use the Macaulay Duration to solve for the
Modified Duration.
17 (Use cells A5 to D12 from the given information to complete this question.)
18
19
20 Price
21 Macaulay Duration
22 Modified Duration
Kimball Industries Coupon Bond Blake & Associates Zero-Coupon Bond PJ Financial Perpetual Bond
23
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