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RHIM4322 Homework 5 Characteristics and Valuation of Bonds Please complete and show work in an excel'spreadsheet following the Demo- Exercise. Do transfor the financial data to the spreadsheet: No need to show-the explanatory notes the what is being provided in the Demo Exercise. 1 Submit the Homework spreadsheet using this filename "RHM4322-Last_Name-Homework-s" I 1. Calculate the value of a bond that will mature in 20 years. The annual coupon interest rate is 7.75%, and the investor's required nate of retum is 8.25%.1 2. You own a bond that pays 12% in annual coupon interest. It matures in 15 years. Calculate the value: of the bond if your required rate of retum on the bonds is (a)8%, (b) 12%, and (c) 15%, respectively. 3. Assume the parket price of a 5 -year bond for Margaret Inc. is $900. The bond has an annual coupon: interest rate 4.6%. What is the bond's expected rate of retum (Yield to Maturib)? 1 . 4. National Steel 15 -year bonds pay 8% coupon interest annually. 5 a. The market price of the bonds is $1,085. Compute the bond's expected rate of retum (Yield to: Maturity). b. Your required nate of retum is 10%. Determine the value of the bond to you. 1 c. + Should you purchase the bond? Why? 4 RHIM4322 Homework 5 Characteristics and Valuation of Bonds Please complete and show work in an excel'spreadsheet following the Demo- Exercise. Do transfor the financial data to the spreadsheet: No need to show-the explanatory notes the what is being provided in the Demo Exercise. 1 Submit the Homework spreadsheet using this filename "RHM4322-Last_Name-Homework-s" I 1. Calculate the value of a bond that will mature in 20 years. The annual coupon interest rate is 7.75%, and the investor's required nate of retum is 8.25%.1 2. You own a bond that pays 12% in annual coupon interest. It matures in 15 years. Calculate the value: of the bond if your required rate of retum on the bonds is (a)8%, (b) 12%, and (c) 15%, respectively. 3. Assume the parket price of a 5 -year bond for Margaret Inc. is $900. The bond has an annual coupon: interest rate 4.6%. What is the bond's expected rate of retum (Yield to Maturib)? 1 . 4. National Steel 15 -year bonds pay 8% coupon interest annually. 5 a. The market price of the bonds is $1,085. Compute the bond's expected rate of retum (Yield to: Maturity). b. Your required nate of retum is 10%. Determine the value of the bond to you. 1 c. + Should you purchase the bond? Why? 4

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