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Zero Price Calculator and Valuation Tool Two periods Par Rate Maturity (Years) 5% 10% Face Amount Coupon Rate $1,000 10% Discounted Zero Price 01 YTM...

Using the spreadsheet zero_price_calculator_simplified.xlsx, calculate the present value of a 10-year 8% bond and a 10-year 12% bond in the space provided, using both actual zeros and zeros computed based on a constant yield to maturity of 10%. Please also compute amortization of premium and discount on these two bonds.

Zero Price Calculator and Valuation Tool Face Amount Coupon Rate Face Amount Coupon Rate Face Amount Coupon Rate Two periods $1,000 10% $1,000 8% $1,000 12% Par Rate Maturity (Years) Zero Price 01 YTM Zeros Payments Zeros YTM Zeros Payments Zeros YTM Zeros Payments Zeros YTM Zeros 5% 1 95.24% 0.95 90.91% $100.00 95.24% $95.24 90.91% $90.91 $80.00 95.24% $76.19 90.91% $72.73 $120.00 95.24% $114.29 90.91% $109.09 10% 2 82.25% 1.77 82.64% $1,100.00 82.25% $904.76 82.64% $909.09 $1,080.00 82.25% $888.31 82.64% $892.56 $1,120.00 82.25% $921.21 82.64% $925.62 Total $1,000.00 Total $1,000.00 Total $964.50 Total $965.29 Total $1,035.50 Total $1,034.71 Face Amount Coupon Rate Face Amount Coupon Rate Face Amount Coupon Rate Ten periods $1,000 10% $1,000 8% $1,000 12% Par Rate Maturity (Years) Zero Price 01 CHECK PAR RATES YTM Zeros Payments Zeros YTM Zeros 1% 1 99.01% 0.99 100% 90.91% $100.00 99.01% $99.01 90.91% $90.91 2% 2 96.10% 1.95 100% 82.64% $100.00 96.10% $96.10 82.64% $82.64 3% 3 91.40% 2.87 100% 75.13% $100.00 91.40% $91.40 75.13% $75.13 4% 4 85.13% 3.72 100% 68.30% $100.00 85.13% $85.13 68.30% $68.30 5% 5 77.54% 4.49 100% 62.09% $100.00 77.54% $77.54 62.09% $62.09 6% 6 68.91% 5.18 100% 56.45% $100.00 68.91% $68.91 56.45% $56.45 7% 7 59.56% 5.78 100% 51.32% $100.00 59.56% $59.56 51.32% $51.32 8% 8 49.80% 6.27 100% 46.65% $100.00 49.80% $49.80 46.65% $46.65 9% 9 39.93% 6.67 100% 42.41% $100.00 39.93% $39.93 42.41% $42.41 10% 10 30.24% 6.98 100% 38.55% $1,100.00 30.24% $332.60 38.55% $424.10 Total $1,000.00 Total $1,000.00 Discounted Payments Discounted Payments Discounted Payments Discounted Payments
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