Question: Please help with the part i do not have. thanks Excel Activity: Bond Valuation Cifford Clark is a recent retiree who is interested in investing

Please help with the part i do not have. thanks
Please help with the part i do not have. thanks Excel Activity:
Bond Valuation Cifford Clark is a recent retiree who is interested in
investing some of his savings in corporate bonds. Mis financial planner has
suggested the following bonds: - Bond A has a 6% annual coupon,
matures in 12 years, and has a $1,000 face value. - Bond
B has a 10% annual coupon, matures in 12 years, and has

Excel Activity: Bond Valuation Cifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. Mis financial planner has suggested the following bonds: - Bond A has a 6% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 10% annual coupon, matures in 12 years, and has a 51,000 face value. - Bond C has an 8% annual coupon, matures in 12 years, and has a 31,000 face value. Each bond has a yield to maturity of 8%. The data has been collected in the Microsoft Excel fle below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any, If an answer is rero, enter " 0 ". Download spreadsheet Bond Valuation-e09814.xisk a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. Bond A is selling at Bond B is selling at because its coupon rate is the going interest rate. Bond C is selling at because its coupon rate is the going interest rate. b. Calculate the price of each of the three bonds. Round your answers to the nearest cent. Price (Bond A): $ Price ( Bond B):$ Price (Bond C): 5 c. Calculate the current yleld for each of the three bonds. (Hint: The expectnd current yield is calculated as the annual interest divided by the price of the bond.) found your answers to two decimal places. Current yield (Bond A): Current yield (Eand B): Current yleld (Bond C): d. If the yleld to maturity for each bond remains at 8%, what will be the price of each bond 1 year from now? Alound your answers to the nearest cent. Price ( Bond A):5 Price (E ond B):$ Price ( Band C) 15 What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places. e. Mr. Clark is considering another bond, Bond D. It has an 845 semiannual coupon and a $1,000 face value (i.e., it pays a 340 ceupon every 6 months), Bond D is scheduled to mature in 6 years and has a price of 51,160 , It is also callable in 4 years at a call price of $1,070. 1. What is the bond's nominal yieid to maturity? Round youffanswer to two decimal places: 2. What is the bond's nominal yield to call? Round your answer to two decimal places. 3. If Mr. Clark were to purchase this bond, would he be more likely to recelve the yleld to maturity or yield to call? fxplain your answer. Because the YIM is the YTC., Mr. Clark expect the bond to be called. Consequently, he would earn f. Explain briefly the difference between price risk and reinvestment risk. This risk of a decline in bond values due to an increase in interest rates is called drop in interest rates is called Which of the following bonds has the most price risk? Which has the most reinvestment risk? - A 1-year bond with an 8% annual coupon - A 5-year bond with an 8% annual coupon - A 5-year bond with a zero coupon - A 10-year bond with an 8% annual coupon - A 10-year bond with a zero coupon A 10 -year bond with a tero covpen G has the most price risk. A has the most reinvestment risk. 9. Calculate the price of each bond (A,B, and C) at the end of each year until maturity, assuming interest rates remain constant. Round your answers to the nearest cent. 9. Calculate the price of each bond (A, B, and C) at the end of each year until maturity, assuming interest rates remain constant. Raund your answh to the nearest cent. Create a graph showing the time path of each bond's value. Choose the correct graph. 1. What is the expected current yield for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places 3. What is the total return for each bond in each year? Round your answers to two decimal places

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