Excel Activity: Bond Valuation

Start with the partial model in the file Ch$04$ P$24$ Build a Model.x$/$sx$.$ A $20-$year, $8\%$ semiannual coupon bond with a par value of $$1,000$ may be called in $5$ years at a call price of $$1,040.$ The bond sells for $$1,100.($Assume that the bond has just been issued.$)$

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.

Download spreadsheet Ch$04$ P$24$ Build a Model$-895589.$xIsx

a$.$ What is the bond's yield to maturity? Round your answer to two decimal places.

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b$.$ What is the bond's current yield? Round your answer to two decimal places.

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c$.$ What is the bond's capital gain or loss yield? Round your answer to two decimal places. Use a minus sign to enter a negative value, if any.

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d$.$ What is the bond's yleld to call? Round your answer to two decimal places.

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