The Excel file Immunization Using Individual Bonds contains information about three bonds. Use this data to: Yield to maturity (Expected/Current) 7% Number of Years to Future Liability 8 Future Liability $ 3,000.00 Bond 1 Bond 2 Bond 3 Coupon rate 8.00% 9.000% 7.00% Maturity 9 24 15 Face value 1,000 1,000 1,000 Explain which bond you prefer to use to attempt to immunize this obligation which is due in 8 years. Analyze each bond’s performance in attempting to achieve immunization Please show work in excel and functions/equations used.
The Excel file Immunization Using Individual Bonds contains information about three bonds. Use this data to: Yield to maturity (Expected/Current) 7% Number of Years to Future Liability 8 Future Liability $ 3,000.00 Bond 1 Bond 2 Bond 3 Coupon rate 8.00% 9.000% 7.00% Maturity 9 24 15 Face value 1,000 1,000 1,000 Explain which bond you prefer to use to attempt to immunize this obligation which is due in 8 years. Analyze each bond’s performance in attempting to achieve immunization Please show work in excel and functions/equations used.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter11: Bond Pricing And Amortization (bonds)
Section: Chapter Questions
Problem 3R
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The Excel file Immunization Using Individual Bonds contains information about three bonds. Use this data to:
Yield to maturity (Expected/Current) | 7% | ||
Number of Years to Future Liability | 8 | ||
Future Liability | $ 3,000.00 | ||
Bond 1 | Bond 2 | Bond 3 | |
Coupon rate | 8.00% | 9.000% | 7.00% |
Maturity | 9 | 24 | 15 |
Face value | 1,000 | 1,000 | 1,000 |
Explain which bond you prefer to use to attempt to immunize this obligation which is due in 8 years.
Analyze each bond’s performance in attempting to achieve immunization
Please show work in excel and functions/equations used.
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