Create an Excel File to answer the following questions: 1. A bond has a 5% coupon...

Create an Excel File to answer the following questions:

1. A bond has a 5% coupon rate, and matures in 18 years, and has par value $1000. Find the price of the bond today if the yield to maturity is 4% first assuming annual payments, then again with semi-annual.

2. What is the yield to maturity on a semiannual bond with a 9% coupon rate, $1000 par value, and 3 years to maturity if the price of the bond today is $800?

3. Consider two bonds, both with a current YTM of 3.6%. The first pays no coupon (Cr=0%) and matures in 26 years. The second pays an 8% coupon annually and matures in 4 years.

a) Find the price of both bonds under the current YTM of 3.6%

b) Find the price of both bonds if yields drop to 3.3% and the % change in price

c) Find the price of both bonds if yields rise to 3.9% and the % change in price

d) Which bond has more interest rate risk?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago

Please create an Excel file with the calculated answers to the questions to the Excel homework...

Please create an Excel file with the calculated answers to the questions to the Excel homework for this week. The questions are listed in the attached PDF file. Please also go over the Excel file attached to this assignment in order to familiarize yourself with the different ways Excel can be used to solve Time Value of Money problems when multiple cash flows are involved. There are three worksheets in the Excel file. This Excel file with examples is just...

Answer the following questions in an Excel file. Each questions with multiple parts requires a separate...

Answer the following questions in an Excel file. Each questions with multiple parts requires a separate answer. Label your steps and show each answer (1, 2, 3, and 4) in a separate Excel tab. For problems that require a written answer, use a text box in Excel to record the text. Calculate the PV of $5,000 received 10 years from now compounded annually at discount rates of: 1% 4% 12% Calculate the FV of $5,000 invested for 20 years using...

Create a separate file to answer the following questions and then submit it below. Draw the...

Create a separate file to answer the following questions and then submit it below. Draw the complete graph for each question. a. Draw a graph of the market for jalapeno peppers. Be sure to label everything. b. Draw a new graph that shows what changes would occur to your graph in part ‘a’ if there was bad weather and the jalapeno pepper crop was severely damaged. Explain why you made these changes to the graph. c. Redraw the graph you...

Create an excel workbook for the following questions. Answer these questions under your Solver work for...

Create an excel workbook for the following questions. Answer these questions under your Solver work for each respective problem. 1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the...

Create an Excel file to show the budgets and calculations for the questions below. Assume no...

Create an Excel file to show the budgets and calculations for the questions below. Assume no beginning or ending inventory. Ignore taxes. Analysis or explanations can be included in the Excel cells or in a textbox. Use contribution margin income statement formatting. HammerTime is preparing their 2019 budget. They want to look at static budgets and flexible budgets to determine which is best for them. They estimate sales/production will be between 2,000,000 and 4,000,000 boxes of nails per month. They...

Please answer the following questions using the data in the attached Excel file. You are thinking...

Please answer the following questions using the data in the attached Excel file. You are thinking of investing in Abercrombie and Fitch Co. (ANF). The returns for ANF are embedded in an Excel document below (Source: yahoo.com). 1. For the investment in ANF that you are considering, for all of 2012 determine the following items: a) the mean return b) the median return c) the standard deviation d) the variance e) the coefficient of variation The weekly rates of return...

Load the regression data in the file called wagedata.csv and answer the following questions: (a) Create...

Load the regression data in the file called wagedata.csv and answer the following questions: (a) Create an interaction between Ability and PhD (b) Run a regression with the interaction a constant Ability and PhD. Write down you estimators and the t-statistics (c) Compute the difference-in-difference estimate and write down you answer. (d) Test if the difference is significant by showing relevant steps, and write down the conclusion to the test. Wage Ability Phd 3.52942833628898 2.57892317214096 1 11.5241044105103 0.217444617867018 1 6.43708200805673...

Answer the following problems in an Excel file. Please upload only one Excel file with all...

Answer the following problems in an Excel file. Please upload only one Excel file with all of your answers, including #3 (which requires an explanation rather than a calculation). All problems must be solved using the PV and FV functions in Excel. If I deposit $8,000 in a bank account that pays interest of 1.5%, compounded annually, how much will I have in the account after 10 years? If I deposit $8,000 in a bank account that pays simple interest...

Please provide an excel file that can answer questions similiar to this one by chaning the...

Please provide an excel file that can answer questions similiar to this one by chaning the data and inputing new data 1.You sell short 100 shares of the GTY stock at $80 per share. Assume your broker requires an initial margin of 40% and a maintenance margin of 25%. 1)If the stock price drops to $70, what is the percentage margin? Initial total stock value: $80(100)=$8,000 If the stock price drops to $70, Total stock value: $70(100)=$7,000 Required margin deposit...

1. Bond A has the following features: Face value = $1,000, Coupon Rate = 5%, ...

1. Bond A has the following features: Face value = $1,000, Coupon Rate = 5%, Maturity = 5 years, Yearly coupons The market interest rate is 6.37% What is the current yield for bond A from today to year 1? Calculate your answer to 2 decimal places (e.g., 5.23) 2. Bond A has the following features: Face value = $1,000, Coupon Rate = 5%, Maturity = 5 years, Yearly coupons The market interest rate is 6.37%...

Question