Question: A $1,000 face value bond makes a $50 coupon payment semi-annually. The bond matures in five years with a yield-to-maturity (YTM) of 9%. Round your

A $1,000 face value bond makes a $50 coupon
A $1,000 face value bond makes a $50 coupon payment semi-annually. The bond matures in five years with a yield-to-maturity (YTM) of 9%. Round your answers to two (2) decimal points. Fill in values for Cells B1:B7 in the table below. Show your formula for Cell B7. Without using any calculation, distinguish whether the bond is selling at premium, at discount, or at par. Justify your answer. A B 1 Settlement date 2 Maturity date 3 Annual coupon rate 4 Annual YTM 5 Face value (% of par) 6 Coupons per year 7 Bond price (% of par) (1 1 marks) You wish to have $500,000 of buying power 10 years later. If the nominal return on your savings account is 5% and the inflation rate is 2.9%, calculate the real rate of return, round your answer to two (2) decimal points. Fill in the values for Cells B1:B6 as shown in the table below. Show the Excel formula for Cell B3 and B6, respectively. A B 1 Nominal Rate: 2 Inflation Rate: 3 Real Rate: 4 Target value: 5 Years of savings: 6 Per-year deposit amount

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