Investment Formula Calculation Help Needed
keaon2homework5_investment_help.xlsx
Sheet1
A Treasury bill with 130 days to maturity is quoted at 98.540. What is the bank discount yield, the bond equivalent yield, and the effective annual return? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. Omit the "%" sign in your response.) | ||
Discount yield | % | |
Bond equivalent yield | % | |
Effective annual return | % | Cannot figure out Effect Rate of Return Calculation |
Please provide correct formula and answer for calculation | ||
Sheet3
A Treasury bill purchased in December 2015 has 149 days until maturity and a bank discount yield of 3.72 percent. Assume a $100 face value. | ||
What is the price of the bill as a percentage of face value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Omit the "%" sign in your response.) | ||
Price | % | 98.46033333 |
What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | ||
Bond equivalent yield | % | Cannot figure out Bond Equivalent yield |
Need formula to calcule this answer |
Sheet4
The treasurer of a large corporation wants to invest $16 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 6.64 percent; that is, the EAR for this investment is 6.64 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 80 days, what are the bond equivalent and discount yields on this investment? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | ||
Bond equivalent yield | % | % |
Discount yield | % | % |
Sheet5
Rolling Company bonds have a coupon rate of 4.40 percent, 16 years to maturity, and a current price of $1,106. What is the YTM? The current yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | ||
YTM | % | % |
Current yield | % | % |
Sheet6
A bond sells for $925.36 and has a coupon rate of 7.60 percent. If the bond has 20 years until maturity, what is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | |
Yield to maturity | % |
Sheet7
May Industries has a bond outstanding that sells for $833. The bond has a coupon rate of 8.00 percent and 15 years until maturity. What is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
Yield to maturity |
Sheet8
Atlantis Fisheries issues zero coupon bonds on the market at a price of $612 per bond. Each bond has a face value of $1,000 payable at maturity in 11 years. What is the yield to maturity for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response | |
Yield to maturity | % |
Sheet9
Atlantis Fisheries issues zero coupon bonds on the market at a price of $513 per bond. These are callable in 5 years at a call price of $570. Using semiannual compounding, what is the yield to call for these bonds?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | |
Yield to call | % |
Sheet10
Atlantis Fisheries issues zero coupon bonds on the market at a price of $423 per bond. If these bonds are callable in 7 years at a call price of $541, what is their yield to call? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | |
Yield to call | % |
Sheet11
Great Wall Pizzeria issued 7-year bonds one year ago at a coupon rate of 6.5 percent. If the YTM on these bonds is 8.6 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
Price |
Sheet12
Both bond A and bond B have 7.4 percent coupons and are priced at par value. Bond A has 7 years to maturity, while bond B has 16 years to maturity. | |
If interest rates suddenly rise by 1.8 percent, what is the percentage change in price of bond A and bond B? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | |
Bond A | % |
Bond B | % |
If interest rates suddenly fall by 1.8 percent instead, what would be the percentage change in price of bond A and bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) | |
Bond A | % |
Bond B | % |
Sheet13
LKD Co. has 11 percent coupon bonds with a YTM of 8.7 percent. The current yield on these bonds is 9.6 percent. How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round your answer to 2 decimal places.) | |
Bonds mature | years |
4.160%
4.160%
4.043%
4.043%