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A
Coupon Rate
1
2
3
4
5
6
7
8
9
10
FV
100
4.75% Price of bond
100
99
4.75
4.534606 4.5290398
4.75
4.32898 4.3183582
4.75
4.132677 4.1174771
4.75
3.945277 3.9259405
4.75
3.766374 3.7433138
4.75
3.595584 3.5691826
4.75
3.432538 3.4031516
4.75
3.276886 3.244844
4.75
3.128292 3.0939005
104.75
65.85879 65.054792
100
99
YTM
4.75%
4.88%
YTM
4.75% #VALUE!
101
4.5401169048
4.3395076861
4.1477625693
3.9644898859
3.7893152736
3.6218809119
3.4618447905
3.3088800116
3.1626741214
66.6635278872
101.0000000425
4.62%
#VALUE!
Q2.A
Coupon
Price
YTM(BEY)
8% FV
1000
Bond A
Bond B
BondC
4.50%
4%
0%
1
45
40
0
0
2
45
40
0
0
3
45
40
0
0
4
45
40
0
0
5
45
40
0
0
6
45
40
0
0
7
45
40
0
0
8
45
40
0
0
9
45
40
0
0
10
1045
40
1000
0
11
40
0
12
40
0
13
40
0
14
40
0
15
40
0
16
40
0
17
40
0
18
40
0
19
40
0
20
1040
1000
1040.5545
1000 456.3869 456.38695
Q3 A
Annuity of 25000 for 20 years at 9%
228,213.6 Principal
271,786 Total Interest Paid
22936 principal paid in last year
Q3B
273,302
Q4 A
Bond 1
Bond 2
EAY
10%
10.165%
Q4 B
Bond 1
Bond 2
Future Value
41772482
42721909
Q1.B
Yield
Price
Price
Price
3%
4.75
4.75
4.75
4.75
4.75
4.75
4.75
104.75
112.28446
112.28446
112.28446
YTM(BEY)
6.00%
8.00% 10.00%
Bond A
1127.953 1040.554 961.3913
Bond B 1148.7747
1000 875.3779
Bond C
553.67575 456.3869 376.8895
Q2 B
EAYof Bond B
8.16% Price
Nationalist Bond
1
80 73.97131
2
80 68.39693
3
80 63.24263
4
80 58.47675
5
80 54.07003
6
80 49.99538
7
80 46.2278
8
80 42.74413
9
80 39.52299
10
1080 493.352
YTM
8.15%
990
Principal
Q4 C
Reinvestment risk dominates here
if default risk dominates then other might be costly
990