Excel exercises These problems are to be completed in Excel (Note that the problems above can also be done in Excel. However, the following problem MUST be done in Excel.)

3. Consider a 10-year, risk-free bond with a coupon rate of 5% (annual coupons) and a face amount of $1,000.

1. What is the YTM on the bond if its price is $1,100?

2. What is the annual HPR if you buy the bond for $1,100, hold the bond for 5 years, sell it

   (immediately after the payment of the time 5 coupon) at a price corresponding to a YTM of 4%, and reinvest the intermediate coupons (over the first 5 years) until time 5 at a rate of 3%?