7. NV = $100 | Payments = $10 yr | Ni = 25 y | Nii = .

Exercises: Bonds

IRR
2. NV = 10,000 | N=5 y = 10 s | CR = 12% y = 6% s
i_yr
i_sm

a)
13%
7%

b)
11%
6%

0
1
9
10
Price

CF
-$10,000.00
$600.00
$600.00
$10,600.00
$9,640.56

CF
-$10,000.00
$600.00
$600.00
$10,600.00
$10,376.88

3. N = 1 yr | i = 0% | FV = $1,000 | CR = 7% yr
Price = NPV(7%,1000) = $934.58
4. N = 5 yr | CR = 14% | NV = $1,000
N
0
1
2
3
4
5
Current i
14%
12%
18%

CF
-$1,000.00
$140.00
$140.00
$140.00
$140.00
$1,140.00
Price
$1,000.00
$1,072.10
$874.91

5. N = 5% | NV = 1,000 | Payments = $0
a)

b)

N
CF
0
-$1,000.00
1
$0.00
4
$0.00
5
$1,000.00
i_yr
10%
Price
$620.92

N
CF
0
-$1,000.00
1
$0.00
9
$0.00
10
$1,000.00
i_sm
5%
Price
$613.91

N
0
1
2
25 / 100

N = 25 y
10%
CF
-$100.00
$10.00
$10.00
$110.00

N = 100 y
10%
CF
-$100.00
$10.00
$10.00
$110.00

8. CETEs
28 day 91 day
Rate 4.42% 4.37%
Price $99.66 $98.90

182 day 364 day

4.49%
4.60%
$97.76
$95.46