Question: 1 B Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date 2/15/2038 4 Coupon Rate 8% 5 Required Return 9% 6 Face Value 1000 7

1 B Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date 2/15/2038 4 Coupon Rate 8% 5 Required Return 9% 6 Face Value 1000 7 Frequency 2 8 Basis 0 9 Current Yield ? What is the correct formula for B9? -(B4-B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,B7,B8)*B6) =B4*B6/PRICE(B2,B3,B4,B5,B6/B6 100,B7,88)/100*B6 -(B49B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,87,88)/100'B6) =B4B6/PRICE(B2,B3,B4,B5,B6/B6/100,37,38) 1 Settlement Date 2 Maturity Date 3 Coupon Rate 4 Yield 5 Face Value 6 Frequency 7 Basis 8 Price 9 Modified Duration 2/15/2018 2/15/2038 8.00% 8.39% 1.000 2 0 962.50 > What is the correct formula for cell B8 to calculate the modified duration? =MDURATION(B1,B2,B3,B4,B6,B7) - DURATION(B1,B2,B3) =MDURATION(B1,B2,B4,B3,B6,B7) -DURATION(B1,B2,B3,B4,B6,B7) 1 B Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date 2/15/2038 4 Coupon Rate 8% 5 Required Return 9% 6 Face Value 1000 7 Frequency 2 8 Basis 0 9 Current Yield ? What is the correct formula for B9? -(B4-B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,B7,B8)*B6) =B4*B6/PRICE(B2,B3,B4,B5,B6/B6 100,B7,88)/100*B6 -(B49B6)/(PRICE(B2,B3,B4,B5,B6/B6 100,87,88)/100'B6) =B4B6/PRICE(B2,B3,B4,B5,B6/B6/100,37,38) 1 Settlement Date 2 Maturity Date 3 Coupon Rate 4 Yield 5 Face Value 6 Frequency 7 Basis 8 Price 9 Modified Duration 2/15/2018 2/15/2038 8.00% 8.39% 1.000 2 0 962.50 > What is the correct formula for cell B8 to calculate the modified duration? =MDURATION(B1,B2,B3,B4,B6,B7) - DURATION(B1,B2,B3) =MDURATION(B1,B2,B4,B3,B6,B7) -DURATION(B1,B2,B3,B4,B6,B7)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

(1) DISC; (2) EFFECT ; (3) NOMINAL; (4) RATE Based on your understanding of these functions, complete the following statements: The DISC function is designed to calculate the of a security. The...

Excel: Interest related functions Learning to use interest related functions From getting loans from creditors to analyzing investment opportunities, interest rates and growth rates are used...

For the purposes of this module you are expected to learn about the following interest rate-related functions: (1) DISC ; (2) EFFECT ; (3) NOMINAL; (4) RATE Based on your understanding of these...

Bond Valuation 2 Settlement Date 3 Maturity Date 4 First Call Date 5 Coupon Rate 8.00% 6 Required Return 9.00% 7 Redemption Value 2000 8 Call Price 1050 9 Frequency 10 Basis 8.00% 9.00% 1000 1050 12...

D Bond A 12 12 1 12% $1,000 10% E Bond B A B C Bond Valuation 2 3 4 Years to maturity 5 Number of coupon payment per year 6 Coupon rate 7 Par value 8 Yield to maturity 9 10 b. Calculating the price...

1 Bond Valuation 2 3 4 Years to maturity 5 Number of coupon payment per year 6 Coupon rate 7 Par value Yield to maturity 8 Bond A 12 1 12% $1,000 10% Bond B 12 1 8% $1,000 10% Bond C 12 1 10% $1,000...

WACC Estimation The following table gives the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains. The following focts also apply to...

answer E-G please 5. The following table gives the current balance sheet for Travellers Inn Inc. (TIT), a company that was formed by merging a number of regional motel chains. (19) Cash $ 10 Accounts...

The following table gives the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains. he following facts also apply to TII: 1. The...

please show all work for parts A through G and highlight the answers please! i really need help understanding how you got the correct answer $. The following table gives the current balance sheet for...

How can a nurse aide identify Mr. James’s medical problems, his emotional and physical needs, and deal with these problems? Pay close attention to safety issues specific for an individual who...

Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $80 per share. If the firm's total market value is unchanged by the split, what will the stock price...

53. LO.7 While vacationing in Florida in November 2012, Sally was seriously injured in an automobile accident (she died several days later). How are the following transactions handled for tax...

Durum almalar: Domino's Pizza, Inc., 2013 Kurulularn mevcut misyonunu, hedeflerini ve stratejilerini belirleyin ve deerlendirin.

2. Take notes as you watch one of your usual TV programs. What are some underlying messages of the story or the events? What are the values and traits of the characters you like the most and the...

1. LaunchPad for Real Communication offers key term videos and encourages selfassessment through adaptive quizzing. Go to bedfordstmartins.com/realcomm to get access to: LearningCurve Adaptive...

5. Describe how the convergence of media technologies can enhance or hinder your participation in the social and political process