Question: Please do in excel but don't use any functions please Questions on Bonds: Answer with a working worksheet making the cashflows in each period explicit


Please do in excel but don't use any functions please
Questions on Bonds: Answer with a working worksheet making the cashflows in each period explicit (not using the PRICE function or PV, FV, RATE, PMT, NPER functions ) each of the questions below 3. For each of the following bonds, calculate the price per $1,000 of par value, assuming semiannual coupon payments. Coupon Rate (%) Years to Maturity Required Yield (%) Bond 8 A B 9 9 20 15 14 7 9 10 D 6 0 8 4. Consider a bond selling at par ($100) with a coupon rate of 6% and 10 years to maturity. a. What is the price of this bond if the required yield is 15%? b. What is the price of this bond if the required yield increases from 15% to 16%, and by what percentage did the price of this bond change? c. What is the price of this bond if the required yield is 5%? d. What is the price of this bond if the required yield increases from 5% to 6%, and by what percentage did the price of this bond change? 5. Replicate all the underlying calculations to create Exhibit 2.3 in Fabozzi, as shown the next page. Exhibit 2.3 Time Path for the Price of a 20-Year 10% Bond selling at a Discount and Premium as It Approaches Maturity Price of Discount Bond Price of Discount Bond Year Selling to Yield 1200 Selling to Yield 7.8% 20.0 5 549.54 $1,221.00 29.5 350.31 1,218.62 19.0 351.34 1,216.14 18.5 352.63 1.213.57 18.0 853.79 1,210.90 175 855.02 1 208.13 170 $56.32 1,205.24 16.5 357.70 1.202.25 16.0 $59.16 1,199.14 155 560.71 1.195.90 15.0 $6235 1192.54 143 864.09 1.189.05 14.0 $65.94 1,185.43 135 867.89 1,181.66 13.0 86997 1,17274 123 372.17 1.173.67 12.0 874.30 1,169.45 11.3 37697 1.165.06 11.0 879.58 1.160.49 10.3 $82.36 1,135.75 10.0 855.30 1.150.83 9.5 888.42 1,145.71 9.0 891.72 1.140.39 8.3 395.23 1.134.57 8.0 398.94 1.129.13 3 902.88 1,123.16 7.0 90705 1,116.97 6.5 911.47 1,110.53 6.0 916.16 1.103.84 3.5 92113 3.096.89 3.0 926.40 1,089.67 43 93198 1,062.16 4.0 93790 1,074,37 3.5 94418 1,066.27 3.0 950.83 1,057.85 23 95788 1,049.11 965.35 1,040.02 1.3 97327 1,030.58 1.0 981.67 1,020.78 0.3 990.53 1,010,59 0.0 1,000.00 1,000.00 20
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
