• Each group will submit one document with the answers to the following questions and shown work as indicated prior to the deadline
• The document may be either a spreadsheet file or a photo of a hand-written paper.
  • I have prepared the following template, which should be perfect for this assignment.
• Do not round intermediate calculations
• Round all dollar-value answers to the nearest cent
• Round all percent answers to the nearest hundredth of a percent
• Round all time answers to the nearest tenth of a unit
  • e.g. "4.3 years"
• For questions 1-3, the group must:
  • Indicate each cash flow on a timeline labeled with the appropriate unit of time 1 point
  • Show the inputs that were entered into calculator 1 point
    • E.g. N=6, I/Y=5.5, PV=-100, PMT=0, FV=X
    • E.g CF0=-100, C01=50, C02=100, I=10
      • Note that for cash flow function inputs, you may exclude the frequency variables unless you set them to something other than 1.
  • Clearly state the answer to the question 3 points
• For question 4, clearly state the correct answer. 5 points

Questions:

1.A 7% semiannual coupon bond with a $1000 par value matures in 5 years and currently sells for $946. What is the YTM?

2.A 5.5% coupon bond has a YTM of 6% and matures in 7 years. What is the market price?

3.A 4.5% coupon bond has a market price of $718.79. The yield is 9.9%. How many years until the bond matures?

4.A bond has a face value of $1000 and sells for $897. It pays $35 every six months. What is the current yield?

1 Answer Annual coupon ($) Compounding period Annuity pmt amt Quoted rate/ YTM Per period rate IN 1/Y TPV PMT FV 2 Answer Annual coupon ($) Compounding period Annuity pmt amt Quoted rate/ YTM Per period rate N 1/Y PV |PMT FV 3 Answer Annual coupon ($) Compounding period| Annuity pmt amt Quoted rate/ YTM Per period rate IN /Y PV PMT FV 4 Answer Ann. Coupon Mkt Price