1307 - Bond Valuation Rework Problem in the instruction...

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Bond Valuation Rework Problem in the instruction using a spreadsheet. After completing questions a through d, answer the new questi 4-9. A 10-year 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years at a call price of $1,060. The bond sells for $1,100. (Assume that the bond has just been issued.) Work parts a through d with a spreadsheet. You can also work these parts with a calculator to check your spreadsheet answers if you aren't confidient of your spreadsheet solution. You must then go on to work the remaining parts with the spreadsheet. a. What is the bond's yield to maturity? Basic Input Data: Years to maturity: 10 Periods per year: 2 Periods to maturity: 20 Coupon rate: 12% Par value: $1,000 Periodic payment: $60 Current price $1,100 Call price: $1,060 Years till callable: 4 Periods till callable: 8 YTM = 10.37% quoted. b. What is the bond's current yield? Current yield
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1307 - Bond Valuation Rework Problem in the instruction...

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