Using Excel, find the daily full and flat prices for the following bond between the issue and maturitydates. Plot full and flat prices in the same graph where the vertical axis is price and horizontal axis isdate. Assume a day count convention of 30/360 (European) and a face value of $100.Issue Date: 02/11/2016Maturity Date: 02/11/2021Coupon Rate: 8%Coupon Frequency: Semi-annualYield-to-Maturity: 10%The Excel functions needed: PRICE, COUPPCD, COUPNCD, ACCRINTFor the bond described above, manually compute the flat price, accrued interest, and full price forsettlement date of 05/20/2019. Please show your work. Compare your results with those fromExcel.

Given Face value =$100 Coupon rate = 8% p.a. Semi annual interest rate=8%×12=4% Number of days in a…

Answered: Using Excel, find the daily full and…

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 market price of a semi-annual pay bond is $970.96. It has 18.00 years to maturity and a yield to maturity of 7.41%. What is the coupon rate? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Show Hint
Using Excel, compute yield-to-maturity for the following bonds (report your Excel formulas and their inputs): Price = 90, Fixed Coupon Rate = 5%, Maturity = 5 years, Coupon Frequency = 1 b. Price = 90, Fixed Coupon Rate = 5%, Maturity = 5 years, Coupon Frequency = 2 Price = 90, Fixed Coupon Rate = 5%, Maturity = 5 years, Coupon Frequency = 4 а. %3D %3D С. %3D For each bond above, compute the Effective Annual Rate so that you can directly compare the bonds with different coupon payment frequencies. Based on these comparable effective annual rates, which bond has the highest expected return? How does the effective annual rates differ from yield-to-maturities computed in above? What is the explanation of these differences?|
The following table contains data to calculate forward rates using pure expectations theory.a) Find the yield on a 8 year bond, 2 years forward (2r8).b) Find the yield on a 6 year bond, 3 years forward (3r6).Maturity Yield1 year 2.00%2 years 2.20%3 years 3.40%4 years 4.50%5 years 5.00%6 year 5.00%7 years 5.20%8 years 5.40%9 years 5.50%10 years 5.50% Please help me with this show the work and do it in excel Many thanks
Use the method of averages to find the approximate yield rate for the bond with the following characteristics: Face value = $6000 Bond rate payable semi-annually = 7% Time before maturity: 7 years Market quotation = $102.75 NOTE: The bond is to be redeemed at par.
Calculate the duration (and price) of a bond with the following characteristics: A semi-annual payment bond with a $1,000 face value, a 4,5% coupon rate, a 7.8% YTM, and 8 years to maturity. Show your table of calculations or show Excel inputs if using the Excel commands.
Calculate the duration (and price ) of a bond with the following characteristics: A semi - annual payment bond with a $1,000 face value, a 4.5% coupon rate, a 7.8% YTM, and 8 years to maturity. Show your table of calculations or show Excel inputs if using the Excel commands.
The following is a list of prices for zero-coupon bonds of various maturities. Maturity (years) Price of Bond 1 $ 953.40 2 903.47 3 852.62 4 787.66 Required: Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. Assume annual coupon payments. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. Assume annual coupon payments.
Consider a bond with semiannual interest payments that has a Settlement Date of 8/15/2020, a Maturity Date of 2/15/2031, a Coupon Rate of 5.00%, a Market Price of $975, a Face Value of $1,000, and a Required Return of 5.35%. What is the Macaulay Duration using the Duration function on these bonds expressed as a decimal calculated to two decimal places if you purchase them at the current market price? For example, if your answer is 12.345 then enter as 12.35 in the answer
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Information below is the downloaded from Federal Reserve's treasury yield curve website: Maturity 1 2 3 5YTM 0.260% 0.600% 0.860% 1.130% All yields are par yield. Ie coupon rate same as ytm and bond priced at par of 100. Q1d. Find forward rate for all years.

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