Chapter 5 Problem 24 Build a Model help

Chapter 5 Problem 24 Build a Model help - Chapter 5. Ch05...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5. Ch05 P24 Build a Model Basic Input Data: Years to maturity: 20 Periods per year: 2 Periods to maturity: Coupon rate: 8% Par value: $1,000 Periodic payment: Current price $1,100 Call price: $1,040 Years till callable: 5 Periods till callable: a. What is the bond's yield to maturity? Peridodic YTM = Annualized Nominal YTM = b. What is the bond's current yield? Current yield = Hint: Write formula in words. Current yield = / Hint: Cell formulas should refer to Inpu Current yield = (Answer) c. What is the bond's capital gain or loss yield? Cap. Gain/loss yield = - Hint: Write formula in words. Cap. Gain/loss yield = - Hint: Cell formulas should refer to Inpu Cap. Gain/loss yield = (Answer) d. What is the bond's yield to call? Here we can again use the Rate function, but with data related to the call. Peridodic YTC = Annualized Nominal YTC = A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price bond sells for $1,100. (Assume that the bond has just been issued.)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Chapter 5 Problem 24 Build a Model help - Chapter 5. Ch05...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online