Question: hello can you help me with finding bond valuation ? Page Layout Formulas Data Review View Help Tell me what you want to do Arial

hello can you help me with finding bond valuation ?

hello can you help me with finding bond valuation ? Page Layout

Page Layout Formulas Data Review View Help Tell me what you want to do Arial . = General File Home Insert * Cut En Copy Paste Format Painter Clipboard v 10 VA A A = == 333 ab Wrap Text Merge & Center - & Share AutoSum 9 Fill- Sort & Find & Clear Filter Select Editing BIU - B $ -% ; Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Font Alignment Number Cells K L M N O P Q R S T U V 1 Bond Valuation: Consider the followingt two bonds. COMPARING TWO BONDS Bond A Bond B Part 1: 4 Coupon rate 5% 5% Market interest rate 5 Maturity 10 20 Price of Bond A 6 Face value 1,000 1,000 Price of Bond B Part 1. Assume the market interest rate is 6%. What is the price of each bond? Part 2. Make a table comparing the bond prices when interest rate varies from 0% to 20%. Year Part 3: Which bond is more sensitive to changes in the market interest rate? Explain using a chart. Part 2: Effect of market interest rate on bond prices Interest rate Bond A price Bond B price 0% 1% 2% w och 3% 4% 5% CO 00 6% Bond A Bond B 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 1,050.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 1,050.00 7% 8% 9% 10% 11% 12% 14% 16% 18% 20%

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