Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 27 years to maturity, and a coupon rate of 3.6 percent paid annuant. If the yield to maturity is 3.2 percent, what is the current price of the bond in euros? Input area: Settlement date Maturity date Coupon rate B 9 Coupons per year 10 Redemption value (% of par) 11 Yield to maturity 12 Par value 13 1/1/2020 1/1/2047 3.60% 17 Output area: 18 19 Price (% of par) 20 Price 1 100 3.20% €1,000 14 (Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel functions 15 question. Leave the "Basis" input blank in the function. You may enter a constant as a hard coded value.) 16 -1036.00

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
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Ef 350.

Even though most corporate bonds in the United States make coupon payments
semiannually, bonds issued elsewhere often have annual coupon payments.
Suppose a German company issues a bond with a par value of €1,000, 27 years
to maturity, and a coupon rate of 3.6 percent paid annuant. If the yield to
maturity is 3.2 percent, what is the current price of the bond in euros?
B
4 Input area:
5
6 Settlement date
7 Maturity date
8
Coupon rate
9 Coupons per year
Redemption value (% of par)
10
11 Yield to maturity
12 Par value
13.
1/1/2020
1/1/2047
3.60%
17 Output area:
18
19 Price (% of par)
20 Price
21
1
100
3.20%
€1,000
14 (Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this
15 question. Leave the "Basis" input blank in the function. You may enter a constant as a hard coded value.)
16
-1036.00
Transcribed Image Text:Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 27 years to maturity, and a coupon rate of 3.6 percent paid annuant. If the yield to maturity is 3.2 percent, what is the current price of the bond in euros? B 4 Input area: 5 6 Settlement date 7 Maturity date 8 Coupon rate 9 Coupons per year Redemption value (% of par) 10 11 Yield to maturity 12 Par value 13. 1/1/2020 1/1/2047 3.60% 17 Output area: 18 19 Price (% of par) 20 Price 21 1 100 3.20% €1,000 14 (Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this 15 question. Leave the "Basis" input blank in the function. You may enter a constant as a hard coded value.) 16 -1036.00
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