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    RJR Calculation (Part 1)

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    John Wade
    This document contains information about three bond investments denominated in US dollars and Japanese yen. For each bond, it provides the face value, price, fee, coupon rate, redemption amount, annual cash flows in the local currency and US dollars, and internal rate of return. The cash flows reflect the bond's coupon payments and redemption value using the currency exchange rates in the given years, with the year 0 rate being the offer price and subsequent years using the bid price. The three bonds have internal rates of return between 10.2-10.6%.

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    RJR Calculation (Part 1)

    Uploaded by

    John Wade
    33 views5 pages
    This document contains information about three bond investments denominated in US dollars and Japanese yen. For each bond, it provides the face value, price, fee, coupon rate, redemption amount, annual cash flows in the local currency and US dollars, and internal rate of return. The cash flows reflect the bond's coupon payments and redemption value using the currency exchange rates in the given years, with the year 0 rate being the offer price and subsequent years using the bid price. The three bonds have internal rates of return between 10.2-10.6%.

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    This document contains information about three bond investments denominated in US dollars and Japanese yen. For each bond, it provides the face value, price, fee, coupon rate, redemption amount, annual cash flows in the local currency and US dollars, and internal rate of return. The cash flows reflect the bond's coupon payments and redemption value using the currency exchange rates in the given years, with the year 0 rate being the offer price and subsequent years using the bid price. The three bonds have internal rates of return between 10.2-10.6%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    33 views5 pages

    RJR Calculation (Part 1)

    Uploaded by

    John Wade
    This document contains information about three bond investments denominated in US dollars and Japanese yen. For each bond, it provides the face value, price, fee, coupon rate, redemption amount, annual cash flows in the local currency and US dollars, and internal rate of return. The cash flows reflect the bond's coupon payments and redemption value using the currency exchange rates in the given years, with the year 0 rate being the offer price and subsequent years using the bid price. The three bonds have internal rates of return between 10.2-10.6%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    Face value

    Price
    Fee
    Coupon
    Redemption
    Year
    0
    1
    2
    3
    4
    5

    1,000,000 (in dollar)


    100.125%
    1.875%
    10.125%
    1,000,000
    CFs in dollar
    982,500
    (101,250)
    (101,250)
    (101,250)
    (101,250)
    (1,101,250)
    IRR

    10.594%

    Face value
    Price
    Fee
    Coupon
    Redemption
    Year
    0
    1
    2
    3
    4
    5

    25,000,000,000 (in yen)


    100.250%
    1.875%
    6.375%
    25,000,000,000
    CFs in yen
    24,593,750,000
    (1,593,750,000)
    (1,593,750,000)
    (1,593,750,000)
    (1,593,750,000)
    (26,593,750,000)

    FX forward rate
    236.9
    231.3
    223.9
    215.6
    207.1
    197.6

    (Yr 0 used offer price, then rest of yrs used bid price)

    CFs in dollar
    103,814,900.80
    (6,890,402.08)
    (7,118,133.10)
    (7,392,161.41)
    (7,695,557.70)
    (134,583,755.06)
    IRR

    offer price, then rest of yrs used bid price)

    10.640%

    Face value
    Price
    Fee
    Coupon
    Redemption
    Year
    0
    1
    2
    3
    4
    5

    25,000,000,000 (in yen)


    101.500%
    1.875%
    7.750%
    115,956,000 (in dollar)
    CFs in yen
    24,906,250,000
    (1,937,500,000)
    (1,937,500,000)
    (1,937,500,000)
    (1,937,500,000)
    (24,850,405,600)

    FX forward rate
    236.9
    231.3
    223.9
    215.6
    207.1
    197.6

    (Yr 0 used offer price, then rest of yrs used bid price)

    CFs in dollar
    105,134,022.79
    (8,376,567.23)
    (8,653,416.70)
    (8,986,549.17)
    (9,355,383.87)
    (125,761,161.94)
    IRR

    offer price, then rest of yrs used bid price)

    10.208%

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