T Collaborate Format Organize 125% Chart Text Shape Media Comment Add Category Insert Table Sheet View Zoom Prob. 1 Prob. 2 Prob. 3 Prob. 4 v. NOV 2021 Sheet Name Prob. 3 c D D E F G A B Coupon Coupon Par Value Background Par Value Cash flows: Market Rate Market Price Cash Flows: 0.5 Duplicate Sheet 0.5 1.0 1.0 Delete Sheet 1.5 1.5 2.0 2.0 2.5 2.5 3.0 3.0 3.5 3.5 4.0 4.0 4.5 4.5 5.0 5.0 5.5 5.5 6.0 6.0 6.5 6.5 7.0 7.0 7.5 7.5 8.0 8.0 8.5 8.5 9.0 9.0 9.5 9.5 10.0 10.0 10.5 10.5 11.0 11.0 11.5 11.5 12.0 12.0 Price YieldPage .)of2 O 3. JTM's treasury ofce is looking at buying a bond to earn some money on its cash balances. It has four options, all semi-annual bonds, to pick from: A B c D Coupon 3.3% 4.1% 4.5% 0.0% PAR Value 1,000 | 1,000 1,000 1,000 | Market Rate 4.6% | 3.8% 4.5% 3.2% | The market rate is the expected yield for a bond of that credit quality. They have price quotes, but they want you to calculate the prices of each bond independently. One week after you provided the prices (which were right, by the way), they ask you to calculate the yields being earned on four bonds that JTM owns. The details are: D E F G Coupon 2.88% 5.15% 4.26% 0.0% PAR Value 1,000 | 1,000 1,000 1,000 Market Price (983) | (1 ,032) (1,072) (565) Continues on the next page ZOOM +