For the same bond in prob, assuming the new yield of the bond one year from today
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Question:
- For the same bond in prob, assuming the new yield of the bond one year from today is 4%. Perform the following calculations: (5 points)
- Calculate the new price of the bond, using the Price function in Excel. (Ignore the fact one year later this bond is only a four year bond)
- Calculate the price return of the bond and the income of the bond (using original YTM)
- Calculate the 1 year total return of the bond
| settlement | 11/19/2021 | Maturity | 11/19/2026 |
| Yield to Maturity | Coupon | Principal | |
| 3.00% | 3.50% | $ 100 | |
| Compounding Freq | 2.0 |
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