ch7_QNP_calc

# ch7_QNP_calc - CHAPTER 7 INTEREST RATES AND BOND VALUATION...

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CHAPTER 7 INTEREST RATES AND BOND VALUATION Calculator Solutions 3. Enter 10 8.75% \$75 \$1,000 N I/Y PV PMT FV Solve for \$918.89 4. Enter 9 ±\$934 \$90 \$1,000 N I/Y PV PMT FV Solve for 10.15% 5. Enter 13 7.5% ±\$1,045 \$1,000 N I/Y PV PMT FV Solve for \$80.54 Coupon rate = \$80.54 / \$1,000 = 8.05% 6. Enter 20 3.70% \$34.50 \$1,000 N I/Y PV PMT FV Solve for \$965.10 7. Enter 20 ±\$1,050 \$42 \$1,000 N I/Y PV PMT FV Solve for 3.837% 3.837% × 2 = 7.67% 8. Enter 29 3.40% ±\$924 \$1,000 N I/Y PV PMT FV Solve for \$29.84 (\$29.84 / \$1,000)(2) = 5.97% 15. Bond X P 0 Enter 13 6% \$80 \$1,000 N I/Y PV PMT FV Solve for \$1,177.05 P 1 Enter 12 6% \$80 \$1,000 N I/Y PV PMT FV Solve for \$1,167.68 P 3 Enter 10 6% \$80 \$1,000 N I/Y PV PMT FV Solve for \$1,147.20

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P 8 Enter 5 6% \$80 \$1,000 N I/Y PV PMT FV Solve for \$1,084.25 P 12 Enter 1 6% \$80 \$1,000 N I/Y PV PMT FV Solve for \$1,018.87
Bond Y P 0 Enter 13 8% \$60 \$1,000 N I/Y PV PMT FV Solve for \$841.92 P 1 Enter 12 8% \$60 \$1,000 N I/Y PV PMT FV Solve for \$849.28 P 3 Enter 10 8% \$60 \$1,000 N I/Y PV PMT FV Solve for \$865.80 P 8 Enter 5 8% \$60 \$1,000 N I/Y PV PMT FV Solve for \$920.15 P 12 Enter 1 8% \$60 \$1,000 N I/Y PV PMT FV Solve for \$981.48 16. If both bonds sell at par, the initial YTM on both bonds is the coupon rate, 9 percent. If the YTM suddenly rises to 11

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## This note was uploaded on 06/16/2011 for the course FIN 521 taught by Professor Varney during the Spring '11 term at Andrew Jackson.

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ch7_QNP_calc - CHAPTER 7 INTEREST RATES AND BOND VALUATION...

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