Question

**** I have the answers only need the formulas to properly solve **** THANK YOU!!!!!!!!!!!!!!!!

4)Cosmos issued a new series of bonds on January 1, 1995. The bonds were sold at par ($1,000), had a 12% coupon, and mature in 30 years, on December 31, 2024. Coupon payments are made semiannually (on June 30 and December 31).

What was the price of the bonds on January 1, 2000, 5 years later, assuming that interest rates had fallen to 10%?= $1182.56

Find the current yield on January 1, 2000, given the price as determined in # 4. =10.15

Find the capital gains yield on January 1, 2000, given the price as determined in # 4. =-0.15

Find the total return on January 1, 2000, given the price as determined in # 4. =10

On July 1, 2018, 6.5 years before maturity, Cosmos’s bonds sold for $916.42. What was the current yield at that time?=13.09

On July 1, 2018, 6.5 years before maturity, Cosmos’s bonds sold for $916.42. What was the capital gains yield at that time =0.91

On July 1, 2018, 6.5 years before maturity, Cosmos’s bonds sold for $916.42. What was the total return at that time? =14

Answer 1

1.
=Coupon rate*Par value/yield*(1-1/(1+yield/2)^(2*t))+Par value/(1+yield/2)^(2*t)
=12%*1000/10%*(1-1/1.05^(25*2))+1000/1.05^(25*2)
=1182.56

2.
=Coupon rate*Par value/Price
=12%*1000/1182.56
=10.15%

3.
=Yield-Current yield
=10%-10.15%
=-0.15%

4.
=yield
=10%

P.S.: I am not allowed to answer more than 4 questions