Complete the assignment on this sheet and submit to the Dropbox on D2L titled Assignment1 Submit this sheet and the EXCEL spreadsheet you use to answer the questions Use separate tabs on your spreadsheet labeled with the number of the question you are answering 1 Go to the Board of Governors of the Federal Reserve System web site www federalreserve gov and find the H6 release Find the seasonally adjusted values for the M1 money supply and its components in July 2020and July 2021 Calculate the growth rate of M1 and each of its components over the period July 2020 to July 2021 Month Year M1 Currency Demand Deposits Other Liquid Deposits July 2020 17,773 8 1,885 8 2,216 0 12,672 0 July 2021 19,402 0 2,089 4 4,337 0 12,975 5 Growth rate( ) 9 2 10 8 95 7 2 4 For each of the following write down the equation that you would need to solve in order to answer these questions Find the numerical answer to the question using EXCEL 2 a What is the yield to maturity on a coupon bond that matures in 7 years, with a coupon rate of 2 , and a face value of $1,000 if it is selling for price of $980 What is the price of a coupon bond maturing in 20 years with a coupon rate of 3 , and a face value of $1,000 if identical bonds are yielding 4 3 What is the yield on a zero coupon bond, maturing in 20 years that has a face value of $100,000 and that sells for a price of $50,000 4 Consider a corporate bond with a face value of $1,000,000, a coupon rate of 6 and a maturity date of January 15, 2025 a Suppose that you purchased this bond on January 15, 2021 Bonds with similar risk characteristics are yielding 4 What price do you pay for the bond b You decide to sell the bond on January 15, 2022, immediately after receiving your second coupon payment On January 15, 2022, bonds with similar risk characteristics are yielding 6 What price do you receive for the bond c What rate of return did you earn by purchasing this bond on January 15, 2021 and selling it January 15, 2022 5 You have borrowed $300,000 to purchase a house on a 30 year fixed rate mortgage The bank informs you that the yield to maturity on your loan is 3 5 What are your monthly payments 6 You purchase a $1,000 face value US Treasury bill on December 31, 2021 with a maturity of one year for a price of $990 You hold the bond until maturity Find your nominal yield from this investment Suppose that the Consumer Price Index (CPI) in December 2021 was 260 3 and that the CPI in December 2022 was 270 3 Find your ex post real rate of return on this security

The Answer is in the image, click to view ...

Question: Complete the assignment on this sheet and submit to the Dropbox on D2L titled Assignment1. Submit this sheet and the EXCEL spreadsheet you use to

Complete the assignment on this sheet and submit to the Dropbox on D2L titled Assignment1. Submit this sheet and the EXCEL spreadsheet you use to answer the questions. Use separate tabs on your spreadsheet labeled with the number of the question you are answering.

1. Go to the Board of Governors of the Federal Reserve System web site www.federalreserve.gov and find the H6 release. Find the seasonally adjusted values for the M1 money supply and its components in July 2020and July 2021. Calculate the growth rate of M1 and each of its components over the period July 2020 to July 2021.

Month/Year	M1	Currency	Demand Deposits	Other Liquid Deposits
July 2020	17,773.8	1,885.8	2,216.0	12,672.0
July 2021	19,402.0	2,089.4	4,337.0	12,975.5
Growth rate(%)	9.2%	10.8%	95.7%	2.4%

For each of the following write down the equation that you would need to solve in order to answer these questions. Find the numerical answer to the question using EXCEL.

2. a. What is the yield to maturity on a coupon bond that matures in 7 years, with a coupon rate of 2%, and a face value of $1,000 if it is selling for price of $980?

What is the price of a coupon bond maturing in 20 years with a coupon rate of 3%, and a face value of $1,000 if identical bonds are yielding 4%?

3. What is the yield on a zero coupon bond, maturing in 20 years that has a face value of $100,000 and that sells for a price of $50,000?

4. Consider a corporate bond with a face value of $1,000,000, a coupon rate of 6% and a maturity date of January 15, 2025.

a. Suppose that you purchased this bond on January 15, 2021. Bonds with similar risk characteristics are yielding 4%. What price do you pay for the bond?

b. You decide to sell the bond on January 15, 2022, immediately after receiving your second coupon payment. On January 15, 2022, bonds with similar risk characteristics are yielding 6%. What price do you receive for the bond?

c. What rate of return did you earn by purchasing this bond on January 15, 2021 and selling it January 15, 2022?

5. You have borrowed $300,000 to purchase a house on a 30 year fixed rate mortgage. The bank informs you that the yield to maturity on your loan is 3.5%. What are your monthly payments?

6. You purchase a $1,000 face value US Treasury bill on December 31, 2021 with a maturity of one year for a price of $990. You hold the bond until maturity. Find your nominal yield from this investment. Suppose that the Consumer Price Index (CPI) in December 2021 was 260.3 and that the CPI in December 2022 was 270.3. Find your ex post real rate of return on this security?

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 Accounting Questions!

Please provide 1. Raw material used 2. cost of Goods Manufactured 3. Cost of Good sold 4. Income Statement Accounting 154 Chapter 2 Excel Data Box Project Due Monday, February 7, 2022 at 10:45 AM 1....

Drive (miles) 4 6 6 20 25 25 28 29 33 36 36 36 36 36 40 42 42 54 54 55 63 63 71 71 73 76 76 76 78 80 80 80 80 88 94 State MI SC OR MI GA CA NY TX SC TX CA MI TX OR IL FL IL FL NY OH PA OR MI MI FL NY...

Case for Digital Assets Semester: 5 rln 2023 Name: I II Total Points Possible: 20 FinalScore- Final Percentage: On each tab of this spreadsheet you will find instructions to help you complete the...

Need Help in Part 5 Part Five Instructions Before preparing the Financial Statements make sure all the assignments have been corrected in your spreadsheets. Prepare the Financial Statements listed...

Guidance for iLab Report for Week 2 The dataset for the Week 2 iLab assignment resides in Doc Sharing as an Excel document, called \"Excel Data Sheet for iLab Assignments\". You will be using...

help Inline XBRL HTML Form is over 7.5MB, performance may be affected. December 31, 2021 December 31, 2020 19,384 Assets Current assets Cash and cash equivalents Short-term marketable securities...

X Times New Roman 12 v ' ' = Paste B I U v a. Av AB7 x fx A B D E E F 15 Item: January 1, 2015 - December 31, 2015 Amount (S) Comment 2 a Purchased feed and feed supplements 23,880 purchased feed...

Financial Statement Analysis FORM To start, gain access to the companys DISNEY 10-K report from the SEC website (www.sec.gov) (.gov indicates it is a government site.) Go to www.sec.gov On the dark...

Please help!? Part Five Instructions Before preparing the Financial Statements make sure all the assignments have been corrected in your spreadsheets. Prepare the Financial Statements listed below....

Part Five Instructions Before preparing the Financial Statements make sure all the assignments have been corrected in your spreadsheets. Prepare the Financial Statements listed below. a. Adjusted...

Prepare a power point presentation on Pureland Cyber Security Improvement Plan

Does the fact that the cash flow from operating activities is normally positive imply that cash and cash equivalents usually increase each year?

how do the concepts of Sources of Capital for Entrepreneurs apply to real world situations

Which of the following is a hybrid design? randomized blocks design Solomon four group design Switched replications design all of the above

According to the text, change can take one of two forms: incremental or discontinuous. In your opinion, are the changes pursued by Elon Musk incremental, discontinuous, or both? Explain your answer.

Based on your reading from the text on the concept of organizational culture, in your opinion, what type of culture would you expect to find in any of Mr. Musks companies, be it Tesla, SpaceX, or...

Nick Woodman seems to be facing a management challenge. What is (are) the nature of the (those) challenge(s)?