Question: These problems are to be completed in Excel. Please print out and hand in a copy of the Excel spreadsheet. (Note that the problems above
These problems are to be completed in Excel. Please print out and hand in a copy of the Excel spreadsheet. (Note that the problems above can also be done in Excel. However, the following problem MUST be done in Excel.) 3. Consider a 10-year, risk-free bond with a coupon rate of 5% (annual coupons) and a face amount of $1,000. a. What is the YTM on the bond if its price is $1,100? b. What is the annual HPR if you buy the bond for $1,100, hold the bond for 5 years, sell it (immediately after the payment of the time 5 coupon) at a price corresponding to a YTM of 4%, and reinvest the intermediate coupons (over the first 5 years) until time 5 at a rate of 3%?
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