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    priyanshu kumar
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    The document contains 5 bond valuation problems providing information on face value, coupon rate, required rate of return, time to maturity, and payment frequency. It calculates bond values and yields to maturity (YTM) for bonds including coupon, zero coupon, and discount bonds. The values and YTMs are provided for various interest rates, time periods, and payment frequencies.

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    The document contains 5 bond valuation problems providing information on face value, coupon rate, required rate of return, time to maturity, and payment frequency. It calculates bond values and yields to maturity (YTM) for bonds including coupon, zero coupon, and discount bonds. The values and YTMs are provided for various interest rates, time periods, and payment frequencies.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    5 views3 pages

    Untitled

    Uploaded by

    priyanshu kumar
    The document contains 5 bond valuation problems providing information on face value, coupon rate, required rate of return, time to maturity, and payment frequency. It calculates bond values and yields to maturity (YTM) for bonds including coupon, zero coupon, and discount bonds. The values and YTMs are provided for various interest rates, time periods, and payment frequencies.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 3

    BOND VALUATION

    PROBLEM 1
    FACE VALUE 1000
    ANNUAL COUPON RATE 7%
    REQUIRED RATE OF RETURN 8%
    YEARS TO MATURITY 3
    PAYMENT FREQUENCY 2

    BOND VALUE £973.79

    PROBLEM 2
    FIND THE VALUE OF ZERO COUPON BOND.
    FACE VALUE 1000
    TIME TO MATURITY 20
    INTEREST RATE 5%

    ZERO COUPON BOND £376.89

    PROBLEM 3
    FACE VALUE 1000
    DISCOUNT RATE 4%
    TIME TO MATURITY 20
    COUPON RATE 2.50%

    BOND VALUE £796.15

    FACE VALUE 1000


    DISCOUNT RATE 4%
    TIME TO MATURITY 20
    COUPON RATE 2.50%
    PAYMENT FREQUENCY 2 4

    BOND VALUE £794.83 £794.17

    PROBLEM 4
    A Bond with 12 years of maturity has a face value of 1000, a coupon rate of 8%. Find approximate YTM and YTM using functio
    YTM 8.63% APPROXIMATE YTM
    TIME TO MATURITY 12 80
    FACE VALUE 1000
    COUPON RATE 8%
    CURRENT MARKET PRICE 950

    YTM 8.69%
    PROBLEM 5
    PAR VALUE 1000
    COUPON RATE 6%
    COUPON PER YEAR 2
    YEARS TO MATURITY 5
    CURRENT MP 938.4

    YTM 7.52% annually


    3.75% semi annually
    YTM and YTM using function.

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