GM 506 Unit 4 Assignment Template Word.docx - GM 506 Unit 4...

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GM 506 Unit 4 Chapter 5 Assignment Questions Name: Date: November 2019 Please label your file with your name, unit number, and Assignment number. For each of the four answers note the inputs/ numbers of the Excel/fx financial calculator used to solve the bond related questions along with the calculated valuations. Note that in items B and C Present Value amounts values went up as market rates went down (or vice versa). What are the underpinnings or mechanics of this bond trading fundamental? A. What is the current market yield for a 1,000 par value bond, with a 10% annual coupon rate that matures in three years? The bond is currently trading at $1,064.
B. What is the Present Value of a 5% annual coupon, $1,000 par value bond, to mature in

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