Can you show me how to work out the problem below to get the right answer...

Can you show me how to work out the problem below to get the right answer in EXCEL please? Please show work and formulas to calculate the right answer

Two years ago an investor purchased a 6% semi-annual compounding coupon bond with a remaining maturity of 15 years at a price of (at that time) 85% of par. Today, i.e. two years after the purchase, the investor realizes that the bond has exactly the same price like it had two years ago (i.e. 85%). Based on this information, which of the following answers is correct:

	A. The YTM of the 6% Bond today is the higher than two years ago.
	B. Overall, the profit for the investor from this investment over the two years is Zero.
	C. Over the remaining life of the bond, the value of the principal is less than the value of the coupons.
	D. If the investor held the 6% coupon bond until maturity, the overall return from this investment over the 8 years would be 100% minus 85%, i.e. 15%.
	E. None of the above answers is correct.

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Expert Solution

jeff jeffy answered 1 year ago

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