a) For the following bond, calculate its NPV given its YTM, for each scenario, i
ID: 2704785 • Letter: A
Question
a) For the following bond, calculate its NPV given its YTM, for each scenario, i.e. filling the price for highlighted area Face Value $1,000Coupon Rate 5%
Maturity 5
Payment Annual
YTM NPV
1.000%
1.500%
2.000%
2.500%
3.000%
3.500%
4.000%
4.500%
5.000%
5.500%
6.000%
6.500%
7.000%
7.500%
8.000%
8.500%
9.000%
9.500%
a) For the following bond, calculate its NPV given its YTM, for each scenario, i.e. filling the price for highlighted area Face Value $1,000
Coupon Rate 5%
Maturity 5
Payment Annual
YTM NPV
1.000%
1.500%
2.000%
2.500%
3.000%
3.500%
4.000%
4.500%
5.000%
5.500%
6.000%
6.500%
7.000%
7.500%
8.000%
8.500%
9.000%
9.500%
Explanation / Answer
Face Value $1,000 Coupon Rate 5% Maturity 5 Payment Annual YTM NPV 1.00% 1,194.14 1.50% 1,167.39 2.00% 1,141.40 2.50% 1,116.15 3.00% 1,091.59 3.50% 1,067.73 4.00% 1,044.52 4.50% 1,021.95 5.00% 1,000.00 5.50% 978.65 6.00% 957.88 6.50% 937.66 7.00% 918.00 7.50% 898.85 8.00% 880.22 8.50% 862.08 9.00% 844.41 9.50% 827.21
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.