AutoSave Off File Home Insert Page Layout ch04_p24_build_a_model v Search Data Review View Automate Formulas 10 AA =1 Arial Paste BIU v Clipboard Z BA Font v General $%90-00 2 Alignment E Number [ M64 fx A B C D E F G H 79 80 Help H Insert く Delete Formatting Conditional Format as Cell Table Styles Format Styles Cells 81 f. Now assume the date is 10/25/2021. Assume further that a 12%, 10-year bond was issued on 7/1/2021, pays 82 interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find the bond's 83 84 Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the 85 price of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown below: 86 87 Basic info: J K Σ WE◊ David N M << Z ANSE So Filt Ed 88 Settlement (today) 89 Maturity 90 Coupon rate 91 Current price (% of par) 92 Redemption (% of par value) 93 Frequency (for semiannual) 94 Basis (360 or 365 day year) 95 96 97 Yield to Maturity: 98 1 Call date Call price Hint: Use the Yield function. For dates, either refer to cells D122 and D123, or enter the date in quotes, such as "10/25/2 99 To find the yield to call, use the YIELD function, but with the call price rather than par value as the 00 redemption 01 02 Yield to call: 03 04 You could also use Excel's "Price" function to find the value of a bond between interest payment dates. 05 06 7 4 4 Build a Model Sheet2 Sheet3 eady Accessibility: Investigate Type here to search O D ]'
AutoSave Off File Home Insert Page Layout ch04_p24_build_a_model v Search Data Review View Automate Formulas 10 AA =1 Arial Paste BIU v Clipboard Z BA Font v General $%90-00 2 Alignment E Number [ M64 fx A B C D E F G H 79 80 Help H Insert く Delete Formatting Conditional Format as Cell Table Styles Format Styles Cells 81 f. Now assume the date is 10/25/2021. Assume further that a 12%, 10-year bond was issued on 7/1/2021, pays 82 interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find the bond's 83 84 Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the 85 price of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown below: 86 87 Basic info: J K Σ WE◊ David N M << Z ANSE So Filt Ed 88 Settlement (today) 89 Maturity 90 Coupon rate 91 Current price (% of par) 92 Redemption (% of par value) 93 Frequency (for semiannual) 94 Basis (360 or 365 day year) 95 96 97 Yield to Maturity: 98 1 Call date Call price Hint: Use the Yield function. For dates, either refer to cells D122 and D123, or enter the date in quotes, such as "10/25/2 99 To find the yield to call, use the YIELD function, but with the call price rather than par value as the 00 redemption 01 02 Yield to call: 03 04 You could also use Excel's "Price" function to find the value of a bond between interest payment dates. 05 06 7 4 4 Build a Model Sheet2 Sheet3 eady Accessibility: Investigate Type here to search O D ]'
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
![AutoSave Off
File
Home Insert Page Layout
ch04_p24_build_a_model v
Search
Data Review View Automate
Formulas
10
AA
=1
Arial
Paste
BIU
v
Clipboard Z
BA
Font
v
General
$%90-00
2
Alignment
E
Number
[
M64
fx
A
B
C
D
E
F
G
H
79
80
Help
H
Insert
く
Delete
Formatting
Conditional Format as Cell
Table Styles
Format
Styles
Cells
81 f. Now assume the date is 10/25/2021. Assume further that a 12%, 10-year bond was issued on 7/1/2021, pays
82 interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find the bond's
83
84 Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the
85 price of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown below:
86
87
Basic info:
J
K
Σ
WE◊
David N
M
<<
Z
ANSE
So
Filt
Ed
88 Settlement (today)
89 Maturity
90 Coupon rate
91 Current price (% of par)
92 Redemption (% of par value)
93 Frequency (for semiannual)
94 Basis (360 or 365 day year)
95
96
97 Yield to Maturity:
98
1
Call date
Call price
Hint: Use the Yield function. For dates, either refer to cells D122 and D123, or enter the date in quotes, such as "10/25/2
99 To find the yield to call, use the YIELD function, but with the call price rather than par value as the
00 redemption
01
02 Yield to call:
03
04 You could also use Excel's "Price" function to find the value of a bond between interest payment dates.
05
06
7
4
4
Build a Model Sheet2 Sheet3
eady Accessibility: Investigate
Type here to search
O
D
]'](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab8cca55-0660-4717-82d6-2aa909bb0944%2Fbc3b9aec-f45d-4a92-885a-54564ad6abdf%2F36881oe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:AutoSave Off
File
Home Insert Page Layout
ch04_p24_build_a_model v
Search
Data Review View Automate
Formulas
10
AA
=1
Arial
Paste
BIU
v
Clipboard Z
BA
Font
v
General
$%90-00
2
Alignment
E
Number
[
M64
fx
A
B
C
D
E
F
G
H
79
80
Help
H
Insert
く
Delete
Formatting
Conditional Format as Cell
Table Styles
Format
Styles
Cells
81 f. Now assume the date is 10/25/2021. Assume further that a 12%, 10-year bond was issued on 7/1/2021, pays
82 interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find the bond's
83
84 Refer to this chapter's Tool Kit for information about how to use Excel's bond valuation functions. The model finds the
85 price of a bond, but the procedures for finding the yield are similar. Begin by setting up the input data as shown below:
86
87
Basic info:
J
K
Σ
WE◊
David N
M
<<
Z
ANSE
So
Filt
Ed
88 Settlement (today)
89 Maturity
90 Coupon rate
91 Current price (% of par)
92 Redemption (% of par value)
93 Frequency (for semiannual)
94 Basis (360 or 365 day year)
95
96
97 Yield to Maturity:
98
1
Call date
Call price
Hint: Use the Yield function. For dates, either refer to cells D122 and D123, or enter the date in quotes, such as "10/25/2
99 To find the yield to call, use the YIELD function, but with the call price rather than par value as the
00 redemption
01
02 Yield to call:
03
04 You could also use Excel's "Price" function to find the value of a bond between interest payment dates.
05
06
7
4
4
Build a Model Sheet2 Sheet3
eady Accessibility: Investigate
Type here to search
O
D
]'
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