d$.$ Using the PRICE function on Excel, calculate the price of this bond to the nearest cent

$($ $$0\mathrm{.}01).$

e$.$ What would the answer to $($a$)$ have been if the day count convention for this bond were

Actual$/365.($Again$,$ use the PRICE function on Excel.$)$ Calculate the price of this bond to the

nearest cent.

Problem $5$

A certain bond's yield$-$to$-$maturity, quoted on a semiannual bond basis, is $7\mathrm{.}000\%.$ An analyst

has been asked to convert to a monthly periodicity. What is the yield$-$to$-$maturity quote in that

case?

Problem $6$

A bond with $7$ years remaining until maturity is currently trading for $105\mathrm{.}000$ per $100$ of par

value. The bond offers a $6\mathrm{.}00\%$ coupon rate with interest paid semi$-$annually.

The bond is first callable in $3$ years and is callable after that date on coupon dates according to

the following schedule:

a$.$ Calculate the yield$-$to$-$maturity for this bond.

b$.$ Calculate the yield$-$to$-$first$-$call for this bond.

c$.$ Calculate the yield$-$to$-$second$-$call for this bond.

d$.$ Calculate the yield$-$to$-$third$-$call for this bond.

e$.$ Assuming market yields are flat and don't change, is it likely that the bond will be called

early? If so$,$ when?

State your yield calculations as percentages to three decimal places.

Problem $7$

A bank certificate of deposit has an initial principal amount of USD $100,000,000$ and a

redemption amount due at maturity of USD $102,078,192.$ The number of days between settlement

and maturity is $92.$

a$.$ Calculate the add$-$on yield for this security assuming a $365-$day year.

b$.$ Calculate the discount yield for this security assuming a $360-$day year.