Question: I need help working out a problem in EXCEL for the discount rate and buidling the chart the original problems that are being referenced are
I need help working out a problem in EXCEL for the discount rate and buidling the chart the original problems that are being referenced are as follows
1.
Using PV I can find the answer but when you construct the relationship to YTM you have to account for the YTM per period which requires the discount rate to be calculated per period to show the yield curve
2.
A semi
-
annual bond has a face value of $1,000, an annual coupon rate of 4.60%,
an yield to maturity of 8.1
%, makes 2 (semi-annual) coupon
payments per year,
and 10 periods to maturity (or 5 years to maturity). Determine the price of this
bond.
3.
Determine the relationship between bond price and yield to maturity by
constructing a graph of the relationship.
The tutorial I'm referencing has a ref in the formula that says NOP I'm not sure what that means could you provided context? and a step by step walkthrough of the third problem Below is the link being referenced
ttps://www.coursehero.com/file/p1m9vhf/5-Calculate-Coupon-Payment-INT-There-are-two-ways-to-calculate-the-coupon/
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