Use Goal Seek in Excel, to solve for the yield to maturity (market rate of return)...

Use Goal Seek in Excel, to solve for the yield to maturity (market rate of return) on a corporate bond with a coupon rate of 4% per year, a maturity of 20 years, and a market value (price) of $1,210. Assume semi-annual coupon payments and a maturity payment of $1,000 per bond.

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jeff jeffy answered 2 years ago

Excel Lab 2: Regression and Goal Seek In this lab, you will use Excel to determine...

Excel Lab 2: Regression and Goal Seek In this lab, you will use Excel to determine the equation of the model which best fits a set of ordered pairs obtained from data sets. You will enter data, graph the data, find the equation for the regression model, and then use that equation to make predictions for the dependent variable. You will use the goal seek to make predictions for the independent variable. Then you will consider how accurate your predictions...

(Use Excel or similar) Pick a coupon rate, yield-to-maturity, and maturity length, T (don’t pick something...

(Use Excel or similar) Pick a coupon rate, yield-to-maturity, and maturity length, T (don’t pick something stupid like zero percent). Compute the price of the bond. Compute the duration of the bond. One at a time, vary each of the three chosen numbers while allowing the price to adjust. See how the duration changes. Create three graphs with duration on the y-axis and coupon rate, ytm, and T on the x-axis.

For this learning activity, use the “MailCampaign.xlsx” file. Use the Goal-Seek tab. Perform a goal-seek analysis...

For this learning activity, use the “MailCampaign.xlsx” file. Use the Goal-Seek tab. Perform a goal-seek analysis that shows the average order size necessary to break even (i.e., have a net income of zero). Mailing Campaign Analysis Costs Mailing inputs Printing 24,000.00 Fixed cost of printing 10,000 Mailing 14,000.00 Variable cost for printing 0.10 Total Costs 38,000.00 Variable cost for mailing 0.28 Number of catalogs mailed 50,000 Net order revenue Revenues 220,000.00 Responses and...

the rate of return to the buyer of the bond is called a. Yield-to-maturity b. current...

the rate of return to the buyer of the bond is called a. Yield-to-maturity b. current yield c. market rate d. coupon rate e. call rate

a. Assume the interest rate in the market (yield to maturity) goes down to 8 percent...

a. Assume the interest rate in the market (yield to maturity) goes down to 8 percent for the 10 percent bonds. Using column 2, indicate what the bond price will be with a 10-year, a 15-year, and a 25-year time period. b. Assume the interest rate in the market (yield to maturity) goes up to 12 percent for the 10 percent bonds. Using column 3, indicate what the bond price will be with a 10-year, a 15-year, and a 25-year...

Use the financial calculator to estimate the Yield to maturity on a 10% coupon Rate Bond...

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a. What is the difference between coupon rate and yield to maturity? How do you use...

a. What is the difference between coupon rate and yield to maturity? How do you use the coupon rate to calculate the periodic payment received from a bond? b. What is the price of a bond that is currently trading at a yield of 10% and has a face value of $1,000? This bond still has exactly 5 years to maturity. This bond pays semi-annual coupon at an annual rate of 8% (i.e., each coupon is 4%). Show how you...

Use the ERR method with ? =%7 per year to solve a unique rate of return for...

Use the ERR method with ? =%7 per year to solve a unique rate of return for the following cash flow diagram. Year Cash Flow 0 -200 1 -140 2 +570 3 -830 4 +470 5 +320 6 -120

Use the ERR method with ? =%10 per year to solve a unique rate of return for...

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the yield to maturity of a 20-year 8% coupon bond with a $1,000 face value that sells for $1,200. (Excel function: rate)

Use Excel to calculate (Please type the complete function command with all parameter inputs; round up your answers to 2 decimal places): the yield to maturity of a 20-year 8% coupon bond with a $1,000 face value that sells for $1,200. (Excel function: rate) the yield to maturity of a 5-year discount bond with $1,000 face value that sells for $950. (Excel function: rate) the installment payment of a 4-year fixed payment loan of $25,000 with 4% interest rate. (Excel...

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