google spreadsheet formulation. step by step. Financial Mathematics concepts

6. [2.5 pt] For each bond from Ato F, complete the following table based on the information provided and determine: a. The payments generated b. The current yield Current/market Par/ Face Time to Discount Bond value Type value maturity Coupon rate rate {WM} A Zero-coupon $1,000 5 years 2% annual 7% annual B $1,200 6 years {paid annually} 4% annual C $520 $1,000 8 yea rs 0% 6% annual 0 $1,000 5 years {paid semi-annually} 2% annual E $4,992.03 Zero-coupon $10,000 11 years 5% annual F $9,503.19 $10,000 8 years {paid semi-annually} 7. 8. [2.0 pt] Suppose the following quotes are listed in the nancial pages of your local newspaper: . Current Volume Last \"man" mum\" (\"I Matur't" Yield 1%] [51,0005] Price {as} gaygrmca'b'z $10,000 7.250 1;1;2027 7.135 19,024 it)?" mam\" $1,000 5.250 12:1;2025 6.517 33,055 30'559 . If you bought one of these bonds, what payments would you receive? - Is this bond selling at a premium, at a discount, or at par? For the Major Localbiz Corp. bond issue, this table does not list the last price. Determine it. For the bonds of each corporation: I How much would one ofthese bonds cost? Cattarauqua Corp. also has another bond issue with the same maturity date as the 2\"d bond, but with a coupon rate of 715%. Would you expect the 730% coupon bonds to sell for a higher price, a lower price, orthe same price as the 5.25% coupon bonds? [1.0 pt] A buyer must often reimburse the seller of a bond for the simple interest due for the period since the last interest payment during which the seller has owned the bond. Suppose that you buy a $1,000 U.S. Treasury bond with an 8% coupon rate for $1,135.19. The last interest payment was made 126 days ago, and in addition you are required to reimburse the seller for 56 days of interest. How much in total will you actually pay for this bond