1) Create tables of the cash flows for the bonds. Find the prices of the bonds....

 

  

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1) Create tables of the cash flows for the bonds. Find the prices of the bonds. O 2) Find the yields on the bonds using XIRR and YIELD. Bond A Bond face value Coupon rate Purchase date 1,000.00 11% 10-Sep-01 Maturity 1-Aug-12 Last coupon date 1-Aug-01 Next coupon date 1-Aug-02 Bond price Invoice price Bond B 1,000.00 9% 10-Sep-01 1-Aug-12 1-Aug-01 1-Feb-02 Market rate of interest 4.90% 18 19 Date 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A 43 44 Yield to maturity 45 Yield to maturity B Cash flow Date D E Cash flow 1) Create tables of the cash flows for the bonds. Find the prices of the bonds. O 2) Find the yields on the bonds using XIRR and YIELD. Bond A Bond face value Coupon rate Purchase date 1,000.00 11% 10-Sep-01 Maturity 1-Aug-12 Last coupon date 1-Aug-01 Next coupon date 1-Aug-02 Bond price Invoice price Bond B 1,000.00 9% 10-Sep-01 1-Aug-12 1-Aug-01 1-Feb-02 Market rate of interest 4.90% 18 19 Date 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A 43 44 Yield to maturity 45 Yield to maturity B Cash flow Date D E Cash flow

Answer rating: 100% (QA)

SOLUTION 1 Tables of cash flows for the bonds Bond A Date Cash Flow 10Sep01 100000 1Aug02 11000 1Aug... View the full answer