Question: Excel Activity: Bond Valuation Start with the partial model in the file Cho4 P24 Build a Model.xlsx. A 15-year, 7% semiannual coupon bond with a

 Excel Activity: Bond Valuation Start with the partial model in the
file Cho4 P24 Build a Model.xlsx. A 15-year, 7% semiannual coupon bond

Excel Activity: Bond Valuation Start with the partial model in the file Cho4 P24 Build a Model.xlsx. A 15-year, 7% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,030. The bond sells for $1,090. (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. x bownload spreadsheet cho4. P24. BulldModel-b86616.xlsx a. What is the bond's yield to maturity? Round your answer to two decimal places b. What is the bond's current yield? Round your answer to two decimal places. % c. What is the bond's capital gain or loss yield? Round your answer to two decimal places. Use a minussion to enter a negative value, if any. % d. What is the bond's yield to call? Round your answer to two decimal places. % e. How would the price of the bond be affected by a change in the going market interest rate? (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. This is an oversimplification, but assume it for purposes of this problem.) Round your answers to the nearest cent. Nominal market rate 0% 2% 4% Actual bond price $ $ $ $ 6% 8% 10% 12% $ $ $ $ 14% 16% $ f. Now assume the date is October 25, 2020. Assume further that a 10%, 10-year bond was issued on July 1, 2020, pays interest semiannually con January 1 and July 1), and sells for $1,090. Again, it may be called in 5 years from the date of issue at a call price of $1,030. Use your spreadsheet to find the bond's yield. Round your answers to two decimal places. Yield to maturity: % Yield to call: 96

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