Chapter_08_ HWk

# Chapter_08_ HWk - Input area Settlement date Maturity date...

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Chapter 8 Problems 2, 3, 14, 18 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these: 1) Click the Microsoft Office Button, and then click Excel Options 2) Click Add-Ins, and then in the Manage box, select Add-ins. 3) Click Go. 4) In the Add-Ins available box, select the Solver Add-in and Analysis T 5) After you load the Solver Add-in, the Solver command is available in

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ToolPak check boxes, and then click OK. n the Analysis group on the Data tab.
Chapter 8 Question 2 Input area: Settlement date Maturity date Annual coupon rate Coupons per year a) Yield to maturity b) Yield to maturity c) Yield to maturity Output area: a) Price Err:502 b) Price Err:502 c) Price Err:502

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Chapter 8 Question 3

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Unformatted text preview: Input area: Settlement date Maturity date Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Output area: Yield to maturity Err:502 Chapter 8 Question 14 Input area: Laurel, Inc. Coupon rate Settlement date Maturity date Face value # of coupons per year Hardy Corp. Coupon rate Settlement date Maturity date Face value # of coupons per year Change in interest rate Output area: Price of Laurel bond Err:502 Price of Hardy bond Err:502 % change in Laurel bond Err:502 % change in Hardy bond Err:502 All else same, the longer the maturity of a bond, the greater is its price sensitivity to changes in interest rates. Chapter 8 Question 18 Input area: Dirty price \$1,090.00 Coupon rate 8.4% Months to next coupon 2 Par value Output area: Accrued interest \$- Clean price \$1,090.00...
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## This note was uploaded on 08/30/2010 for the course MANAGEMENT 3467783 taught by Professor Langly during the Summer '10 term at University of Phoenix.

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Chapter_08_ HWk - Input area Settlement date Maturity date...

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