Question: PLEASE USE EXCEL AND SHOW YOUR WORK!! A. On May 30, 2015 the US treasury issued a bond maturing on November 30th, 2025. The bond
PLEASE USE EXCEL AND SHOW YOUR WORK!! A. On May 30, 2015 the US treasury issued a bond maturing on November 30th, 2025. The bond had a coupon rate of 8%, payable semi-annually on November 30th and May 30th. On June 28rd, 2020, the bond total price (i.e., invoice price) is $1,056. The price includes the accrued interest. Find the annualized YTM.
B. On May 30, 2015 the US treasury issued a bond maturing on November 30th, 2025. The bond had a coupon rate of 8%, payable semi-annually on November 30th and May 30th. The YTM is 9.5%. Find the bond price on May 30th, 2015.
C. On April 15, 2020 the US treasury issued a bond maturing on October 15th, 2040. The bond had a coupon rate of 11.75%, payable semi-annually on October 15th and April 15th. On July 23rd, 2020, the bond was selling at 135.62% of its face value (Face value of $1,000). The price does not include the accrued interest. Find the accrued interest.
D. On April 15, 2020 the US treasury issued a bond maturing on October 15th, 2040. The bond had a coupon rate of 11.75%, payable semi-annually on October 15th and April 15th. On July 23rd, 2020, the bond was selling at 135.62% of its face value (Face value of $1,000). The price does not include the accrued interest. The bond is callable at $1,020 starting from October 15th, 2025. Find the annualized yield-to- call (YTC).
E. On May 15, 2010 the US treasury issued a bond maturing on November 15th, 2020. The bond had a coupon rate of 11.75%, payable semi-annually on November 15th and May 15th. The face value is $1,000 and the yield-to-maturity (YTM) is 9.5%. Find the modified duration of this bond.
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