Chapter09CorradoJordanRex - Chapter 9 Problems 1-25 Input...

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Chapter 9 Problems 1-25 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, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
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Chapter 9 Question 1 STRIPS Input Area: 2 6 5.20% $100 Output Area: Price (% of par) 73.491 =100/(1+(i/n))^M 73.49 Quote Err:511 =INT(D17)&":"&ROUND(32*(D17-INT(D Sheet function $73.49 Frequency, n Time to maturity, M Yield to maturity, i Par value, F =PV(D9/D7,D8*D7,,-D10) P F i n*T F = P *(1+ i/n ) nT
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D17)),)
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Chapter 9 Question 2 STRIPS Input Area: 9.5 6.80% $100,000 Output Area: Price (% of par) 52.980 =100/(1+(D8/2))^(2*D7) 52.98 Quote Err:511 =INT(D15)&":"&ROUND(32*(D15-INT(D Sheet function $52,979.73 Time to maturity, M Yield to maturity, i Par value, F =PV(D8/2,2*D7,,-D9) P F i n*T F = P *(1+ i/n ) nT
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D15)),)
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Chapter 9 Question 3 STRIPS Input Area: 7.0 75.875 75.88 Output Area: YTM 3.98% =2*((100/D8)^(1/(2*D7))-1) Sheet function 3.98% Time to maturity, M Price, P =2*RATE(2*D7,,-D8,100)
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Chapter 9 Question 4 STRIPS Input Area: 10.0 50.375 50.38 Output Area: YTM 6.98% =2*((100/D8)^(1/(2*D7))-1) Sheet function 6.98% Time to maturity, M Price, P =2*RATE(2*D7,,-D8,100)
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Chapter 9 Question 5 Fisher Effect Input Area: Nominal rate 13.40% Inflation rate 3.90% Output Area: Approx. real return rate 9.50%
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Chapter 9 Question 6 Fisher Effect Input Area: Nominal rate 10.10% Real rate 6.20% Output Area: Inflation rate 3.90%
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Chapter 9 Question 7 Treasury Bill Prices Input Area: 110 4.80% $1,000,000 Output Area: Treasury Bill Prices $985,333.33 =D9*(1-D7*D8/360) Days to maturity, D Discount yield, Y Face value, F P i 360-D P = F *(1-( D/360 ) Y ) D
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Chapter 9 Question 8 Treasury Bill Prices Input Area: Days per year 365 110 4.80% Output Area: 4.939% =D7*D9/(360-D8*D9) Days to maturity, D Discount yield, Y Bond equivalent yield, BEY P i 360-D P = F *(1-( D/360 ) Y ) D
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