Annual Annual Semi

q1 q2 q3 q4 q5
FV 1000 1000 1000 1000 1000
Coupn 70 100 55 40 10
Maturity 6 4 10 28 96
Disc rate 9% 12% 7% 5% 1.50%
PV / IV ($910.28) ($939.25) ($894.65) ($851.02) ($746.49)
 Calculation of YTM
Annual Semi A Qtly Monthly
1 2 3 4
FV 1000 1000 1000 1000
Coupon (amt) 80 45 40 10
Maturity 7.5 16 16 36
CMP -930.55 -1030.00 -1065 -870
YTM 9.33% 4.24% 3.46% 1.47%
•Calculate yield to call for a 10 year, 9% callable bond (annual coupon), that is trading in the market for Rs 870. th
•Calculate yield to call for a 5 year, 7% callable bond (semi-annual coupon payments), that is trading in the marke
•Calculate yield to call for a 8 year, 5% callable bond (semi-annual coupon), that is trading in the market for Rs 70
•Calculate Yield to call for a 10 year bond, paying interest on quarterly basis @ 12%, that is trading in the market
Annual Semi Semi Qtly
Q1 Q2 Q3 Q4
FV 1000 1000 1000 1000
Callable
Value 1200 1040 1050 1100

Coup (amt) 90 35 25 30
Callable
period 7 6 10 28
CMP -870 -877.05 -700 -950
YTC 13.89% 6.61% 7.16% 3.50%
he market for Rs 870. the bond is callable at the end of 7th year, at a call price 1200.
t is trading in the market for Rs 877.05. The bond is callable at the end of 3 rd year at a call price of Rs 1040.
in the market for Rs 700. the bond is callable at the end of 5 th year, at a call price 1050.
is trading in the market for Rs 950. the bond is callable at the end of 7 years, at a call price of 1100.
Calculate the bond equivalent yield for a 5 year, 8% bond (semi-annual coupon), that is
trading in the market for Rs 852.80? Also find effective annual yield for the bond?
Semi 1 2 3 4
FV 1000 1000 1000 1000 1000
Copn 40 45 25 27.5 60
Mat 10 12 32 36 14
CMP -852.8 -869.8 -953 -998 -1100
ytm 6% 6% 3% 3% 5%
disc rate BEY 12% 12% 11% 11% 10%
Coupon EAY 8.16% 9.20% 10.38% 11.46% 12.36%
oupon), that is
or the bond?