Bond_Valuation - Cash Received 4 Current int. rate: 0.1...

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Nominal Discounted Cash Flows Cash Flows Bond A Face Value: 1000 Year 1 Maturity: 5 Year 2 Coupon: 0.08 Year 3 Price: 800 Year 4 Current int. rate: 0.1 Year 5 sum: 0 YTM: Nominal Discounted Cash Flows Cash Flows Bond B Face Value: 1000 Year 1 Maturity: 5 Year 2 Coupon: 0.12 Year 3 Price: 1200 Year 4 Current int. rate: 0.1 Year 5 sum: 0 YTM: Coupon Current Yld YTM Bond A (Discount Bond) 0.08 0.10 Bond B (Premium Bond) 0.12 0.10 Coupon Current Yld 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 Bond A (Discount Bond) Bond B (Premium Bond)
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YTM
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Year Price paid (outflow) 0 Bond A Face Value: 1000 Cash Received 1 Maturity: 5 Cash Received 2 Coupon: 0.08 Cash Received 3 Price: 800
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Unformatted text preview: Cash Received 4 Current int. rate: 0.1 Cash Received 5 IRR: Year Price paid (outflow) Bond B Face Value: 1000 Cash Received 1 Maturity: 5 Cash Received 2 Coupon: 0.12 Cash Received 3 Price: 1200 Cash Received 4 Current int. rate: 0.1 Cash Received 5 IRR: Coupon Current Yld YTM Bond A (Discount Bond) 0.08 0.10 Bond B (Premium Bond) 0.12 0.10 Coupon 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14-800 80 80 80 80 1080-1200 120 120 120 120 1120 Current Yld YTM Bond A (Discount Bond) Bond B (Premium Bond)...
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This note was uploaded on 10/17/2009 for the course EC 370 taught by Professor Staff during the Spring '08 term at University of Oregon.

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Bond_Valuation - Cash Received 4 Current int. rate: 0.1...

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