Chapter 5 Problem 24 Build a Model help

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

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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.)

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

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