Question: Will you make sure to show the steps in excel. A BBB-rated corporate bond has a yield to maturity of 8.2%. A U.S. Treaslry security

 Will you make sure to show the steps in excel. A

Will you make sure to show the steps in excel.

A BBB-rated corporate bond has a yield to maturity of 8.2%. A U.S. Treaslry security has a yield to maturity of 6.5%. These yields are quoted as APRs with semiannual corpounding. Both bonds pay semiannual coupons at a rate of 7% and have five years to maturity. Note: assume a $1,000 face value. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula ocross a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the ell in which the data is found. Make your computations only in the blue cells highlighted belov. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. What is the price (expressed as a percentage of the face value) of the Treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds? BBB bond YTM Treasury YTM Coupon rate Maturity (years) Face value 8.2% 6.5% 7% 5 1,000 $ a. What is the price (expressed as a percentage of the face value) of the Treasury bond? Coupon Number of periods Semiannual YTM Bond price Percentage of face value b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? Semiannual YTM Bond price Percentage of face value 1 c. What is the credit spread on the BBB bonds? Spread

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