Question: If possible to solve this with the exact equations needed and the steps. Thank you very much . A $100,000 bond, redeemable at C, pays

 If possible to solve this with the exact equations needed and

If possible to solve this with the exact equations needed and the steps. Thank you very much

the steps. Thank you very much . A $100,000 bond, redeemable at

. A $100,000 bond, redeemable at C, pays a semi-annual coupons at = 3.5% and is bought to yield / 4.0% (a) If the absolute value of the sum of the book value adjustment column for the first 5-years is equal to $1813.49, what is the price of the bond? (4 marks) (b) The book value of the bond after (n - 2) coupons have been paid is $101,917.53. What is C? (4 marks) 6. Determine the price of the following bonds: (a) A 12-year $5000 bond, redeemable at 101.75, with coupons at /2- 5% for the first 6 years and at (3) = 4.5% thereafter, bought to yield /2)= 6% for the first 5 years and /2 = 5.5% thereafter. (3 marks) (b) An 8-year $2000 bond, redeemable at par, with semi-annual coupons starting at $150 and each succeeding coupon being 90% of the preceding coupon, purchased to yield ?" - 7%. (2.5 marks) (c) A 10-year $10,000 par-value bond with semi-annual coupons that starts at $280 and increase by $12 every 6-months thereafter. The desired yield rate is (?) = 5%. (2.5 marks) (d) A perpetual bond that pays quarterly coupons of $100, with each succeeding coupon increasing by 0.75% per quarter forever, with a desired yield rat of ((1) = 6%. (2 marks) Computer Questions (use a spreadsheet to solve the following question: don't forget your name and student number in the right hand header). 7. A loan of $50,000 is to be paid back with semi-annual payments over 12 years at ?) = 9%. The first payment is R and each succeeding payment increases by 8%. Set up an amortization table. Graph the resulting outstanding balances (using a column graph). Make sure your x-axis goes from ( to 24. (6 marks) 8. A 15-year $500,000 bond is purchased. It is redeemable at 103.5, and it pays semi-annual coupons at /4- 6% It is bought to yield ?"= 5%. Set up a bond amortization/accumulation schedule and then graph the book value column (using a line graph). (6 marks)

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