The Excel file Immunization Using Individual Bonds contains information about three bonds. Use this data to: Yield to maturity (Expected/Current) 7% Number of Years to Future Liability 8 Future Liability $ 3,000.00 Bond 1 Bond 2 Bond 3 Coupon rate 8.00% 9.000% 7.00% Maturity 9 24 15 Face value 1,000 1,000 1,000 Explain which bond you prefer to use to attempt to immunize this obligation which is due in 8 years. Analyze each bond’s performance in attempting to achieve immunization Please show work in excel and functions/equations used.
The Excel file Immunization Using Individual Bonds contains information about three bonds. Use this data to: Yield to maturity (Expected/Current) 7% Number of Years to Future Liability 8 Future Liability $ 3,000.00 Bond 1 Bond 2 Bond 3 Coupon rate 8.00% 9.000% 7.00% Maturity 9 24 15 Face value 1,000 1,000 1,000 Explain which bond you prefer to use to attempt to immunize this obligation which is due in 8 years. Analyze each bond’s performance in attempting to achieve immunization Please show work in excel and functions/equations used.
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
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The Excel file Immunization Using Individual Bonds contains information about three bonds. Use this data to:
| Yield to maturity (Expected/Current) | 7% | ||
| Number of Years to Future Liability | 8 | ||
| Future Liability | $ 3,000.00 | ||
| Bond 1 | Bond 2 | Bond 3 | |
| Coupon rate | 8.00% | 9.000% | 7.00% |
| Maturity | 9 | 24 | 15 |
| Face value | 1,000 | 1,000 | 1,000 |
Explain which bond you prefer to use to attempt to immunize this obligation which is due in 8 years.
Analyze each bond’s performance in attempting to achieve immunization
Please show work in excel and functions/equations used.
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