Question: IN EXCEL WITH FORMULA PLEASE Exercises for task 3.1.: 3.1.1. Suppose there are two bonds you are considering: Maturity (years) Annual Coupon rate (%) Par

 IN EXCEL WITH FORMULA PLEASE Exercises for task 3.1.: 3.1.1. Suppose

IN EXCEL WITH FORMULA PLEASE

Exercises for task 3.1.: 3.1.1. Suppose there are two bonds you are considering: Maturity (years) Annual Coupon rate (%) Par Value Bond A 20Y 12% Bond B 30Y 8% 1000 1000 a) If both bonds had a required rate of return of 10%, what would the bonds' prices be? b) Re-calculate the prices of the bonds if the required return falls to 9%. Could you explain why the price increases or decreases given this change in required return? @ul Business 3.1.2. Calculate the NAV of the following fund, assuming 3,500 shares are outstanding. Calculate the percentage change in the NAV of the fund if stock C climbs to $33.41. Shares Stock A B 500 6,000 3,000 owned price $5.74 $65.10 $12.04 $4,368.40 Cash n.a. a) Will the NAV increase or decrease? Why? b) Calculate the return on your investment given the change in NAV

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