The project is spreadsheet problems solving. It is necessary to turn in soft copy of the excel solution. It should be well organized and easy to follow. Question) A Treasury bond that settles on August 10, 2013, matures on April 15, 2018. The coupon rate is 5.6 percent and the quoted price is 104. What is the bond’s yield maturity?
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- The project is spreadsheet problems solving. It is necessary to turn in soft copy of the excel solution. It should be well organized and easy to follow. Question) A bond that settle on June 7, 2013, matures on July 1, 2033, and may be called at any time after July, 2023, at a price of 103. The Coupon rate on the bond is 5 percent and the price if 113.00.what is the yield to maturity and yield to call on this bond?You are an investment manager evaluating two corporate bonds, each with a maturity value of $100,000. Each bond matures in exactly 10 years and each bond has a yield-to-maturity (YTM) of 5%. Bond 1 pays a coupon of 8% and Bond 2 pays a coupon of 3%. Without doing any math, which bond trades at a higher price? Which bond is more sensitive to changes in interest rates? If both bonds have the identical maturity date and YTM, then why do they trade at different prices? Is this a violation of The Law of One Price ? If you buy Bond 1, what is the NPV of the cash flows?Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 13% coupon interest rates and pay annual interest. Bond A has exactly 6 years to maturity, and bond B has 16 years to maturity. b.Calculate the present value of bond B if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. c. From your findings in parts a and b, discuss the relationship between time to maturity and changing required returns. d. If Lynn wanted to minimize interest rate risk, which bond should she purchase? Why? I need all parts and the sub parts answered
- . You have been recently hired to advise Thomsen, Inc., on their bond portfolio. Thomsen has three U.S. treasury bonds that they are considering. The company is extremely conservative and wants to minimize all risk. Bond Type Par Value Coupon Yield to Maturity Maturity (years) A Zero coupon $1,000 8% 10 B Coupon $1,000 12% 8% 10 C Coupon $1,000 5% 8% 10 What bond do you recommend they buy? What bond is the riskiest? You must quantitatively justify your answers.Citibank has developed a way of creating a zero-coupon bond, called a strip, from the coupon bearing Treasury bond by selling each of cash flows underlying the coupon-bearing bond as a separate security. You as a treasurer working for Citibank, have a relatively simple trading strategy. You would buy strips and sell them in the forward market. Suppose for example, that the 3-month interest rate is 4% per annum and the spot price of a strip is $70. What will be the 3-month forward price?Assuming that actual forward price is 72, formulate an arbitrage strategy.Two bonds, A and B, have the same credit rating, the same par value, and the same coupon rate. Bond A has 30 years to maturity and bond B has 5 years to maturity. Please demonstrate your understanding of interest rate risk by answering the following questions : As a bond investor, if you expect a slowdown in the economy over the next 12 months, what would be your investment strategy?
- Citibank has developed a way of creating a zero-coupon bond, called a strip, from the coupon-bearing Treasury bond by selling each of the cash flows underlying the coupon-bearing bond as a separate security. You as a treasurer working for Citibank, have a relatively simple trading strategy. You would buy strips and sell them in the forward market. Suppose for example, that the 3-month interest rate is 4% per annum and the spot price of a strip is $70. Q1)What will be the 3-month forward price? Q2)Assuming that the actual forward price is 72, formulate an arbitrage strategy.Your broker faxed you the following information on two semiannual coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items and all you can read from the fax on the two different bonds is the following information: IBM Coupon Bond AOL Coupon Bond Face Value (Par) $1,000 $1,000 Coupon Rate 5.5% Yield to Maturity 7.5% 9.5% Years to Maturity 10 20 Price $1689.15 Fill in the missing data from the information sent by the broker. price for IBM Coupon Bond and rate for AOL Coupon BondHello, How do i solve this problem without using excel? A bond has a face value of $1000, a coupon rate of 7% with semi-annual payments, and 15 years to maturity. The yield to maturity of bonds of similar risk is 7%. What is the price you would pay for this bond?
- I would like to know how to work this problem in excel please. ..A semi - annual bond has a face value of $1,000, an annual coupon rate of 4.60%, a yield to maturity of 8.1%, makes 2 (semi-annual) coupon payments per year, and 10 periods to maturity ( or 5 years to maturity). Determine the price of this bond.I would like to know how to work this problem in excel please....Bond valuation related problems should be solved by using a financial calculator or MS excel spreadsheet. Accordingly, you must show the values of all relevant time valu of money variables If D1 = $1.50 g (which is constant) = 6.5%, Po = $56, what is the stock's expected capital gains yield for the coming year?Please put the figures in the workings instead of leeters, for example the solutions to this question below: Abacus Ltd is an investment fund that specializes in fixed-income securities. At the end of 2010, the fund’s bond portfolio has the following information Bonds Yield to maturity Price Duration Convexity A 12% 1045 2.35 16.46 B 14% 2265 4.26 22.80 C 8% 1430 3.45 11.96 D 10% 1100 4.20 15.56 Assume that the yield to maturity on each bond increases by 4%, calculate(i) The percentage by which the price of each bond will decrease.(ii) The amount in cedis by which the price of each bond will decrease.(iii) The percentage and the cedi decrease in the total value of the portfolio. Please the answers to this question, I need the full solution.