A2. (Bond valuation) LEVEL A (BASIC)
Find the missing information for each of the following bonds. The coupons are paid in semi annual instalments, so the number of payments is equal to twice the bond’s life in years. The YTM is compounded semi annually.
Corporate Financial Management, Third Edition - Chapter 5 - Solutions in excel
A2. (Bond valuation) Find the missing information for each of the following bonds. The coupons are paid in semi annual instalments, so the number of payments is equal to twice the bond’s life in years. The YTM is compounded semi annually.
Bond
|
N (years)
|
Yield to maturity
|
Present value
|
Coupon rate
|
Face value
|
1
|
8
|
10.20%
|
-
|
8%
|
1,000
|
2
|
7
|
8.00%
|
-
|
9.00%
|
1,000
|
3
|
15
|
9.50%
|
-
|
7.50%
|
1,000
|
4
|
20
|
-
|
1,075
|
8.50%
|
1,000
|
5
|
-
|
7.00%
|
963.8
|
6.49%
|
1,000
|
6
|
13
|
7.80%
|
1,140.60
|
-
|
1,000
|
File Name: A2-bond-valuation.xls File type: application/vnd.ms-excel Price:
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