35 16 Question 1 On November 15, 2016, TRB Corp. issued a 15-year bond maturing on...

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35 16 Question 1 On November 15, 2016, TRB Corp. issued a 15-year bond maturing on November 15, 2031. The bond has a face value of $1,000 and a coupon rate of 4.25%, payable semi-annually on May 15th and November 15th, Assume that today's date is March 30, 2023. Use '1' (Actual/actual) for any Excel functions requiring a day count basis 17 a) Calculate the accrued interest using a manual calculation and using the ACCRINT function (your answers should match). 18 b) Suppose that the bond has a quoted (clean) price of $1,025. Calculate the effective yield to maturity using the XIRR function and the bond equivalent yield (semiannual yield doubled) using the YIELD function. With each approach, pay attention to the value you are using as the price today to calculate the yield; should it be the clean price or the dirty price? 19 c) Suppose that the effective market yield on comparable bonds is 5.25%. Calculate the dirty price of the bond using the XNPV function and the dean price of the bond using the PRICE function. With each approach, pay attention to the value you are using as the yield to calculate the price should it be the effective yield or the bond equivalent yield (semiannual yield 20 doubled)? d, e) Suppose you sell the bond on June 10, 2026 at a quoted (dean) price of $1,045. First, calculate the accrued interest as of the sale date using a manual calculation and using the ACCRINT function (your answers should match). Then determine the realized yield on your bond investment from purchase to sale, calculate the effective yield using the XIRR function and the bond equivalent yield (semiannual yield doubled) using the YIELD function 21 Assume the quoted bond price today (March 30, 2023) is the same as in part (b): 51,025, The main difference between this question and part (b) is that the bond cash flows end on the sale 22 13 EE 11 34 M 10 fvalmafond O d May Settement de IT syg p unders w kunges N De ( (ACE) Jx [ ed to matury a Tevery was the prod Manga Cer Bond . Lama ATN 450-2 Bata WHERE 31/1/ ENZINA VIVIE Yoyret redyt may d Fai of bot NAVNG 18 Maturty fe 9 my ING MA 1 Carte Porday) ku se da (open jarstad vapo spre pr s DAN sale (ACORINT) l the Cashf 1.000.00 NIEP 41.10 BIH W/W/H www (PV) Cerc) 35 16 Question 1 On November 15, 2016, TRB Corp. issued a 15-year bond maturing on November 15, 2031. The bond has a face value of $1,000 and a coupon rate of 4.25%, payable semi-annually on May 15th and November 15th, Assume that today's date is March 30, 2023. Use '1' (Actual/actual) for any Excel functions requiring a day count basis 17 a) Calculate the accrued interest using a manual calculation and using the ACCRINT function (your answers should match). 18 b) Suppose that the bond has a quoted (clean) price of $1,025. Calculate the effective yield to maturity using the XIRR function and the bond equivalent yield (semiannual yield doubled) using the YIELD function. With each approach, pay attention to the value you are using as the price today to calculate the yield; should it be the clean price or the dirty price? 19 c) Suppose that the effective market yield on comparable bonds is 5.25%. Calculate the dirty price of the bond using the XNPV function and the dean price of the bond using the PRICE function. With each approach, pay attention to the value you are using as the yield to calculate the price should it be the effective yield or the bond equivalent yield (semiannual yield 20 doubled)? d, e) Suppose you sell the bond on June 10, 2026 at a quoted (dean) price of $1,045. First, calculate the accrued interest as of the sale date using a manual calculation and using the ACCRINT function (your answers should match). Then determine the realized yield on your bond investment from purchase to sale, calculate the effective yield using the XIRR function and the bond equivalent yield (semiannual yield doubled) using the YIELD function 21 Assume the quoted bond price today (March 30, 2023) is the same as in part (b): 51,025, The main difference between this question and part (b) is that the bond cash flows end on the sale 22 13 EE 11 34 M 10 fvalmafond O d May Settement de IT syg p unders w kunges N De ( (ACE) Jx [ ed to matury a Tevery was the prod Manga Cer Bond . Lama ATN 450-2 Bata WHERE 31/1/ ENZINA VIVIE Yoyret redyt may d Fai of bot NAVNG 18 Maturty fe 9 my ING MA 1 Carte Porday) ku se da (open jarstad vapo spre pr s DAN sale (ACORINT) l the Cashf 1.000.00 NIEP 41.10 BIH W/W/H www (PV) Cerc)

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The price that can be paid for one bond is 93380 E... View the full answer