This bond is a 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has been issued.) Please complete the partial model. You need the following to be answered.

1) What is the bond's yield to maturity?

2) What is the bond's current yield?

3) What is the bond's capital gain or loss yield?

4) What is the bond's yield to call?

5) How would the price of the bond be affected by a change in the going market interest rate? y

6) Now assume the date is October 25, 2020. Assume further that a 12%, 10-year bond was issued on July 1, 2020, pays interest semiannually (on January 1 and July 1), and sells for $1,000. Use the attached spreadsheet to find the bond's yield.

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A negative amortizing mortgage is made for $4,000,000 for a term of 20 years at 5% interest rate. The borrower and lender agree the amount of balloon payment to be $4,400,000. a) Calculate the monthly payment. (4 marks) b) What will the loan balance be if the borrower chooses to repay the loan after 10 years instead of at the end of year 20? (6 marks) c) Suppose instead of a balloon payment of $4,400,000 the borrower agrees to make a monthly payment $13,000 for the above mortgage loan. Calculate the amount of balloon payment. (8 marks) A negative amortizing mortgage is made for $4,000,000 for a term of 20 years at 5% interest rate. The borrower and lender agree the amount of balloon payment to be $4,400,000. a) Calculate the monthly payment. (4 marks) b) What will the loan balance be if the borrower chooses to repay the loan after 10 years instead of at the end of year 20? (6 marks) c) Suppose instead of a balloon payment of $4,400,000 the borrower agrees to make a monthly payment $13,000 for the above mortgage loan. Calculate the amount of balloon payment. (8 marks)

Answer rating: 100% (QA)

Calculate the values as shown below 1 NAF 600S 9 A Basic Input data Years to m... View the full answer