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
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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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