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6. Suppose you have a two-year investment goal, and you are trying to choose how to...

6. Suppose you have a two-year investment goal, and you are trying to choose how to invest between three bonds. Assume that they all carry the same risk of default, and have the following characteristics:

Bond A

Bond B

Bond C

Maturity

7 Years

9 Years

10 Years

Par Value

$1,000

$1,000

$1,000

Coupon Rate

Zero-Coupon

7.55%

8.35%

Frequency

None

2

1

YTM

6.135%

7.267%

7.856%

Also, suppose that you expect their yields to be 9 percent in two years when you sell the bonds. Complete the table below.

Bond A

Bond B

Bond C

Current Price

Expected Price in 2 Yrs.

Total Return ($)

Total Return (%)
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Answer #1

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

AS NOTHING WAS MENTIONED SOLVED IN EXCEL. ALL NECESSARY CELL REFERENCES ARE PROVIDED. HAPPY TO HELP YOU. WILL SOLVE ALL DOUBTS, IF ANY, WITHOUT FAILBOND - Microsoft Excel (Product Activation Failed) Add-Ins View - 2x Dr General Wrap Text FMerce Merge & Center - Center s $

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