Question: excel doesnt matter Excel Online Structured Activity: Bond Valuation Clifford Clark is a recent retiree who is interested in investing some of his savings in


Excel Online Structured Activity: Bond Valuation Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. . Bond B has an 11% annual coupon, matures in 12 years, and has a $1,000 face value Bona C has a 12% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 11% The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any, If an answer is zero, enter"0" b. Calculate the price of each of the three bonds. Round your answers to the nearest cent. Price (Bond A): $ Price (Bond B): 5 Price (Bond C): 5 C. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places. Current yield (Bond A): 96 Current yield (Bond B): % 96 Current yleld (Bond C): d. If the yield to maturity for each bond remains at 12%, what will be the price of each bond 1 year from now? Round your answers to the nearest cent. Price (Bond A): $ Price (Bond B): 5 Price (Bond C): $ What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places, Bond A Bond B Bond C Expected capital gains yield 9 Expected total return e. McClark is considering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face value (be, it pays a $40 coupon every 6 months) Bond D is scheduled to mature in 6 years and has a price of $1,160. It is also callable in 4 years at a call price of $1,070. Bond C % % % % % % What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places. Bond A Bond B Expected capital gains yield Expected total return e. Mr. Clark is considering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face value (.e., It pays a 540 coupon every 6 months). Bond D is scheduled to mature in 6 years and has a price of $1,160. It is also callable in 4 years at a call price of $1,070. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places. % 2. What is the bond's nominal yield to call? Round your answer to two decimal places. %
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