Question: Start with the partial model in the file Ch 0 4 P 2 4 How would the price of the bond be affected by a
Start with the partial model in the file Ch PHow would the price of the bond be affected by a change in the going
market interest rate? Hint: Conduct a sensitivity analysis of price to
changes in the going market interest rate for the bond. Assume that
the bond will be called if and only if the going rate of interest falls
below the coupon rate. This is an oversimplification, but assume it for
purposes of this problem. Round your answers to the nearest cent. Build a Model.xIsx. A
year, semiannual coupon bond with a par value of $ may be called
in years at a call price of $ The bond sells for $Assume that
the bond has just been issued.
The data has been collected in the Microsoft Excel file below. Download the
spreadsheet and perform the required analysis to answer the questions
below. Do not round intermediate calculations.
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