TYPE YOURIDs PLEASE

BOND VALUATION ASSINGMENT READY,WILL BE SH

SEMI ANNUALBOND EXPECT QUIZZES IN EVERY NEXT
COUPON RATE /2
MARKET RATE Kd/2 Kd interest rate
nX2 discount rate
your required rate of r
Q.1 PAR 1,000.00 market rate
COUPON RATE 12% SEMI going interest rate
n 30 YTM (yield to maturiy)
A) 1/1/1978 YTC (yield to CALL)
MARKET RATE =12% BECAUSE BOND SOLD AT PAR i=r=K

B) 1/1/1983
PAR 1,000.00
COUPON RATE 12% SEMI
n 25 (30- 5) YEARS REMAINING TO MATURITY
Kd 10%
Vb = INTx (1-(1+Kd)^-n) +M(1+Kd)^-n INT = PAR X COUP RATE/2
Kd INT = 1000 X 12%/2 = 60
Vb= 60 X (1-(1.05)^-50 +1000(1.05)^-50 Kd/2 = 10%/2 = 5%
0.05 Nx2 = 25 x 2
1095.36 + 87.20
1,182.56
C) CURRENT YIELD
CY = ANNUAL INTEREST / Vb
CY = 120 / 1,182.56 10.15%

CAPITAL GAIN YIELD

YTM = CY + CGY
10% = 10.15% + CGY
CGY= -0.15%
D) 1/7/2001
PRICE (Vb) 916.42 FORMULA
PAR 1,000.00 YTM= INT + (M - Vb)/n
COUPON RATE 12% SEMI Vb x 0.6+ M x 0.4
n 6.50 X 2 = 13
CALCULATE YTM = Kd
YTM= 60 + (1,000 - 916.42)/13
X2
Vb x 0.6+ M x 0.4
YTM= 13.99% %

E) CURRENT YIELD
CY = ANNUAL INTEREST / Vb
CY = 120 / 916.42 13.09%
CAPITAL GAIN YIELD
YTM = CY + CGY
13.99% = 13.09% + CGY
CGY= 0.90%
OURIDs PLEASE IN CHAT
ENT READY,WILL BE SHARED IN GROUP TODAY
UIZZES IN EVERY NEXT CLASS

interest rate
discount rate
your required rate of return
market rate
going interest rate
YTM (yield to maturiy)
YTC (yield to CALL)

ENDING PRICE - BEGING PRICE

BEG PRICE

YTM= INT/2 + (M - Vb)/nx2

X2
Vb x 0.6+ M x 0.4