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Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has s bonds: - Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has an 11% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%. The data has been collected in the Microsoft Excel file below. Downlod the spreadsheet and perform the required analysis to answe Do not round intermediate calculations. Use a minus sign to enter negative values, If any. If an answer is zero, enter " 0 ". Download spreadsheet Bond Valuation-88f70di x15x a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. Bond A is selling at because its coupon rate is the going interest rate. Bond B is selling at because its coupon rate is the going interest rate. Bond C is selling at because its coupon rate is the going interest rate. b. Calculate the price of each of the three bonds. Round your answers to the nearest cent. Price (Bond A): $ Price (Bond B): $ Price (Bond C): $ c. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places. Current yield (Bond A) : Current yield (Bond B): Current yield (Bond C): d. If the yield to maturity for each bond remains at 10%, what will be the price of each bond 1 year from now? Round your answers to the nearest cent. Price ( Bond A):5 Price (Bond B ) $ Price (Bond C): 5 What is the expected captol gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal ploces. E. Mr. Oark is considening another bond, Bond 0 . It has a 9% semiannual coupon and a 51,000 face value (lie., it pays a s45 coupon every 6 months). Bond 0 is scheduind to moture in 8 vears and has a price of $1,170. tt is also callabie in 6 years at a call price of 51,030. 1. What is the bonsis nominal veld to matunity? dound your answer to twa decimal placet. 2. What is the bond's nominal veld to call? Round your antmer to two decimal places. 9. Calculate the price of each bond (A,B, and C) at the end of each year until maturity, assuming interest rates remoin constant. Round your answers to the nearest cent. Create a graph showing the time path of each bonds value, Choose the correct graph. 1. What is the expected current yield for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places. Excel Activity: Bond Valuation Chfford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: - Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has an 11% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%. The date has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the guestions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. If an answer is zero, enter "O:. Downilad spreadsheet Bend Valuation-8870dixlsx Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has s bonds: - Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has an 11% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%. The data has been collected in the Microsoft Excel file below. Downlod the spreadsheet and perform the required analysis to answe Do not round intermediate calculations. Use a minus sign to enter negative values, If any. If an answer is zero, enter " 0 ". Download spreadsheet Bond Valuation-88f70di x15x a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. Bond A is selling at because its coupon rate is the going interest rate. Bond B is selling at because its coupon rate is the going interest rate. Bond C is selling at because its coupon rate is the going interest rate. b. Calculate the price of each of the three bonds. Round your answers to the nearest cent. Price (Bond A): $ Price (Bond B): $ Price (Bond C): $ c. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places. Current yield (Bond A) : Current yield (Bond B): Current yield (Bond C): d. If the yield to maturity for each bond remains at 10%, what will be the price of each bond 1 year from now? Round your answers to the nearest cent. Price ( Bond A):5 Price (Bond B ) $ Price (Bond C): 5 What is the expected captol gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal ploces. E. Mr. Oark is considening another bond, Bond 0 . It has a 9% semiannual coupon and a 51,000 face value (lie., it pays a s45 coupon every 6 months). Bond 0 is scheduind to moture in 8 vears and has a price of $1,170. tt is also callabie in 6 years at a call price of 51,030. 1. What is the bonsis nominal veld to matunity? dound your answer to twa decimal placet. 2. What is the bond's nominal veld to call? Round your antmer to two decimal places. 9. Calculate the price of each bond (A,B, and C) at the end of each year until maturity, assuming interest rates remoin constant. Round your answers to the nearest cent. Create a graph showing the time path of each bonds value, Choose the correct graph. 1. What is the expected current yield for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places. Excel Activity: Bond Valuation Chfford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: - Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has an 11% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%. The date has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the guestions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. If an answer is zero, enter "O:. Downilad spreadsheet Bend Valuation-8870dixlsx

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