Question: Please solve and show work in excel. Consider the following bond: Coupon rate=11% Maturity=18 years Par value=1,000 First par call in 13 years Only put
Please solve and show work in excel.
Consider the following bond:
Coupon rate=11%
Maturity=18 years
Par value=1,000
First par call in 13 years
Only put dare in five years and putable at par value
Suppose the market price for the bond is 1,169.
A. Show that the yield to maturity for this bond is 9.077%
B. Show that the yield to first par call is 8.793%
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