Chapter_5_Bonds_FIN_540_13ed

Chapter_5_Bonds_FIN_540_13ed - Formulas

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Formulas Contain formulas and references to calculations.  Click on the cells and see the calculations Answers Contain formulas and references to calculations.  Click on the cells and see the calculations Spreadsheet refers to the Tab titled: Bond Calculations Spreadsheet You should be able to use this spreadsheet in completing the Cengage Assignments 5-1  (928.39) 5-2 12.48% Using YTM on spreadsheet 5-3 8.55% Using Current Yield on spreadsheet 5-4 2-Year  rRF = r*+IP rRF = r* 7.00% = 4.00% r*= 4% Inflation Current Yr 2% Inflation Next Yr 4% Avg Inflation (IP)= 3.00% 3-Year rRF = r*+IP rRF = r* 7.33% = 4.00% r*= 4% Inflation Current Yr 2% Inflation Next Yr 4% Inflation Year 3 4% Avg Inflation (IP) 3.33% 5-5 Quoted Rate  = rRF + DRP + LP + MRP Quoted Rate - rRF - LP = DRP Quoted Rate - Corporate Bond 9% Present Value of Single Sum + Prese Annuity on Spreadsheet
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rRF 6% DRP 2.500% Quoted Rate - rRF - LP LP 0.50% MPR 0 Maturity Risk Premium the same sin 5-6 Quoted Rate  = r* + IP + DRP + LP + MRP Quoted Rate -r*-IP-DRP-LR = MRP Quoted Rate - Treasury Security 6.30% r* 3.00% IP 3.00% DRP 0.00% 0 for Treasuries LP 0.00% 0 for Treasuries MPR 0.30% 5-7  (1,085.80) Using YTM on spreadsheet 5-8 YTM 6.62% Using YTM on spreadsheet YTC 6.49% Using YTC on spreadsheet 5-9 Bond L Value of Bonds Interest Rate 5%  (1,518.98) Present Va Interest Rate 8%  (1,171.19) Present Va Interest Rate
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Chapter_5_Bonds_FIN_540_13ed - Formulas

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