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Can you help me calculate #3 without Excel

Body Text List Paragraph No a. Credit Risk The risk that the issuer will allow its financial strength to weaken in the future, increasing the probability of default. b. Interest Rate Risk Interest rate risk is the risk that the market rates will rise above the coupon rate Holding all else constant, what is the impact on the market value of a bond that has a Coupon Rate of 5.50% and a current rn( of 4.75% if the 2. nf increases to 5.25%.-The market value of the bond will fall to provide a larger YTM a. b- YTM declines to 4.00%. The market value of the bond will rise to provide a smaller YTM 3. Calculate the market value (in dollars) of the following bond using the present value formula. a. b. c. d. Maturity is exactly three years from today. The Par Value is $1,000 The Coupon Rate is 4.00%. Coupon The current is 4.25%. PayJn ts are made annually PV- $1000 1+0.0425)*3-882.62+ px coupon 4. Referencing your answer to Problems #3, what is the market value (in S) of the bond if a- The YTM rises from 4.25% to 5.25%. PV-(1000+0.04* 1000*3)(1 +0.0525%)^3-960.62 b, The YTM declines from 4.25% to 4.00% PV (1000 + 0.04 * 1 000*3)/(1 +0.04%)^3-995.68 d States)
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HAVE WRITTEN IN EXCEL BUT NOT USED EXCEL

I HAVE WRITTEN PVIFA FORMULA AND PVIF FORMULA ANS SOLVED. THANK YOU

Home nert Page Layout Formulas Data Review View dd-Ins Σ AutoSum Cut ー E ゴWrap Text Sort &Find & 2 ClearFe Select Edting aCopy ㆆ ▼ ▼ B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 conditional Format . Cell Insert Delete Format Formatting, as Table w styles. Paste Format Painter Cells Number Font Alignment Clipboard 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 PRESENT VALUE OF COUPONS PRESENT VALUE OF MATURITY VALUE MARKET VALUE OF BOND- MARKET VALUE OF BOND 40 X PVIFA @4.25% FOR 3 YEARS + 1000 X PVIF @4.25% FOR 3 YEARS 40*(1/r) (1-(1/(1+r)A31000 (1/(1+r)A3) 40 1/0.0425) (1-(1/(1+0.0425)A3)1000 *(1/(1+0.0425)A3) MARKET VALUE OF BOND MARKET VALUE OF BOND MARKET VALUE OF BOND MARKET VALUE OF BOND = 40 (23.529412)*(0.117384)1000 (0.882616) 993.0950599 993.10 MARKET VALUE OF BOND 431 432 Sheet1 ! Sheet2 LOAN T PV FVCELL REFER CELL REF 1 06:19

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