Bond Practice Set - INPUTS Coupon Rate Face Amount Maturity...

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INPUTS Coupon Rate 0.085 Coupon Rate 0.085 Face Amount 1000 Face Amount 1000 Maturity 10 Maturity 10 YTM 0.073 YTM 0.073 Annual or Semi-Annual Annual Annual or Semi-Annual Semi-Annual Data Table For Bond Price vs. Yield to Maturity Year Cash Flows Year Cash Flows $1,941.40 0 0 0.01 1941.404 1 85 1 42.5 0.02 1941.404 2 85 2 42.5 0.03 1941.404 3 85 3 42.5 0.04 1941.404 4 85 4 42.5 0.05 1941.404 5 85 5 42.5 0.06 1941.404 6 85 6 42.5 0.07 1941.404 7 85 7 42.5 0.08 1941.404 8 85 8 42.5 0.09 1941.404 9 85 9 42.5 0.1 1941.404 10 1085 10 42.5 0.11 1941.404 11 42.5 0.12 1941.404 Bond Price $1,941.40 12 42.5 0.13 1941.404 13 42.5 0.14 1941.404 14 42.5 0.15 1941.404 15 42.5 0.16 1941.404 16 42.5 0.17 1941.404 17 42.5 Graph 18 42.5 19 42.5 20 1042.5 Bond Price $2,010.74 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0 500 1000 1500 2000 2500 Bond Price vs. Yield to Maturity $1,941.40 Bond Price
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INPUTS Coupon Rate 0.085 Coupon Rate 0.085 Face Amount 1000 Face Amount 1000 Maturity 10 Maturity 10 Annual or Semi-Annual Annual Annual or Semi-Annual Semi-Annual Bond Price 875 Bond Price 875 Year Cash Flows Year Cash Flows 0 -875 0 -875 1 85 1 42.5 2 85 2 42.5 3 85 3 42.5 4 85 4 42.5 5 85 5 42.5 6 85 6 42.5 7 85 7 42.5 8 85 8 42.5 9 85 9 42.5 10 1085 10 42.5 11 42.5 YTM 10.59% 12 42.5 13 42.5 14 42.5 15 42.5 16 42.5 17 42.5 18 42.5 19 42.5 20 1042.5 YTM 10.55%
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Bond Purchase Date 6/1/2007 Next Coupon Date 6/1/2008 Coupon Rate 7.00% Year to Maturity 8 Yield to Maturity 8.60% Face Amount $1,000.00 CFs 6/1/2007 $- 6/1/2007 0 6/1/2008 $70.00 5/31/2008 $70.00
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  • Spring '13
  • Dr.DavidHyland
  • Finance

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