Worksheet_ch7

# Worksheet_ch7 - maturity? (The answer is returned as a...

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Settlement Date: 03/15/04(Choose a date) Maturity Date: 03/15/29(Choose a date 25 years after settlement) Coupon Rate: 9%(Same as .09, needs to be annual rate) YTM: 8%(Same as .08, needs to be annual rate) Face Value (% of par): 100 Coupons per year: 2 Price(% of par): 110.741092 Formula:=PRICE(B3,B4,B5,B6,B7,B8) You are looking at a bond that has 25 years to maturity. The coupon rate is 9% and coupons are paid semiannually. The yield-to-maturity is 8%. What is the current price?

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Settlement Date: 03/15/04(Choose a date) Maturity Date: 03/15/29(Choose a date 25 years after settlement) Coupon Rate: 9%(Same as .09, needs to be annual rate) Bond Price (% of par): 95 Face Value (% of par): 100 Coupons per year: 2 Yield to maturity: 9.53% Formula:=YIELD(B3,B4,B5,B6,B7,B8) You are looking at a bond that has 25 years to maturity. The coupon rate is 9% and coupons are paid semiannually. The current price is \$950. What is the yield to
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Unformatted text preview: maturity? (The answer is returned as a decimal; format the cell to get a percent.) RATE 4.00%(8%/2) NPER 50(25*2) PMT 4.5(9%*100/2) FV 100(Using 100 par so that PV will give price as % of par) Price \$110.74 Formula: -PV(B3,B4,B5,B6) NPER 50(25*2) PMT 4.5(9%*100/2) PV-95(Entered as a % of par and negative for sign convention) FV 100 YTM 9.53%(Returns as a whole percent, format to get decimal places) Formula: =2*RATE(B11,B12,B13,B14) You are looking at a bond that has 25 years to maturity. The coupon rate is 9% and coupons are paid semiannually. The yield-to-maturity is 8%. What is the current price? You are looking at a bond that has 25 years to maturity. The coupon rate is 9% and coupons are paid semiannually. The current price is \$950. What is the yield to maturity? (Have to multiply by 2 because it returns a semiannual rate)...
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## This note was uploaded on 10/25/2011 for the course ECON 393 taught by Professor D during the Spring '10 term at Rutgers.

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Worksheet_ch7 - maturity? (The answer is returned as a...

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