Question: Using Excel, compute the yield-to-maturity for the following bonds (report your Excel formulas and their inputs): Price = 90, Fixed Coupon Rate = 5%, Maturity

  1. Using Excel, compute the yield-to-maturity for the following bonds (report your Excel formulas and their inputs):
    1. Price = 90, Fixed Coupon Rate = 5%, Maturity = 5 years, Coupon Frequency = 1
    2. Price = 90, Fixed Coupon Rate = 5%, Maturity = 5 years, Coupon Frequency = 2
    3. Price = 90, Fixed Coupon Rate = 5%, Maturity = 5 years, Coupon Frequency = 4
    4. Do you see any differences in yield-to-maturities computed for bonds with different coupon frequencies? If so, investigate and explain the reason.

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