Q1.

A FV 100
Coupon Rate 4.75% Price of bond 100 99 101
1 4.75 4.534606 4.5290397866 4.5401169048
2 4.75 4.32898 4.3183581871 4.3395076861
3 4.75 4.132677 4.1174770615 4.1477625693
4 4.75 3.945277 3.925940512 3.9644898859
5 4.75 3.766374 3.7433138482 3.7893152736
6 4.75 3.595584 3.5691826005 3.6218809119
7 4.75 3.432538 3.4031515796 3.4618447905
8 4.75 3.276886 3.2448439798 3.3088800116
9 4.75 3.128292 3.0939005233 3.1626741214
10 104.75 65.85879 65.054792234 66.6635278872
100 99.000000313 101.0000000425
YTM 4.75% 4.88% 4.62%
YTM 4.75% #VALUE! #VALUE!

Q2.A
YTM(BEY) 8% FV 1000
Bond A Bond B BondC
Coupon 4.50% 4% 0%
1 45 40 0 0
2 45 40 0 0
3 45 40 0 0
4 45 40 0 0
5 45 40 0 0
6 45 40 0 0
7 45 40 0 0
8 45 40 0 0
9 45 40 0 0
10 1045 40 1000 0
11 40 0
12 40 0
13 40 0
14 40 0
15 40 0
16 40 0
17 40 0
18 40 0
19 40 0
20 1040 1000
Price 1040.5544788968 1000 456.3869 456.3869462

Q3 A Q3B
Annuity of 25000 for 20 years at 9%
228,213.6 Principal 273,302
271,786 Total Interest Paid
22936 principal paid in last year
4,460.77 First year interest
Q4 A EAY Q4 B Future Value
Bond 1 10% Bond 1 41772481.694
Bond 2 10.165% Bond 2 42721909.299

Q5. A
Bond Rate Interest Paid ACorporate Tax
1000 6.63% 66.25 35%

Cost of debt 2.15%

Q5. B
total value of 1,500,000,000
Effective tax r 32.68
total tax paybl 525,000,000
total tax paid 490,200,000
Dollar Saved 34,800,000
 Q1.B

Yield 3%
4.75
4.75
4.75
4.75
4.75
4.75
4.75
104.75
Price 112.2845
Price 112.2845
Price 112.2845

YTM(BEY) 6.00% 8.00% 10.00% Q2 B

Bond A 1127.953 1040.554 961.3913 EAYof Bond B 8.16% Price 990
Bond B 1148.775 1000 875.3779 Nationalist Bond
Bond C 553.6758 456.3869 376.8895 1 80 73.97131
2 80 68.39693
3 80 63.24263
4 80 58.47675
5 80 54.07003
6 80 49.99538
7 80 46.2278
8 80 42.74413
9 80 39.52299
10 1080 493.352
YTM 8.15% 990

Compare 8.15% and 8.16% percent

Principal
Q4 C
Reinvestment risk dominates here
if default risk dominates then other might be costly

100
6.63
93.37
32.6795
Name phy Rank1 Mat Rank Difference in D Square
A 35 3 30 5 2 4 0.9
B 23 5 33 3 -2 4
C 47 1 45 2 1 1
D 17 6 23 6 0 0
E 10 7 8 8 1 1
F 43 2 49 1 -1 1
G 9 8 12 7 -1 1
H 6 9 4 9 0 0
I 28 4 31 4 0 0
12

Kruskal-Wallis Test K=12-n(n+1)

two three hmo two three hmo

13 24 26 1 12 14
15 16 22 3 4 9.5
20 19 31 8 7 17
18 22 27 6 9.5 15
23 25 28 11 13 16
14 33 2 18
17 5
29 52.5 89.5
841 2756.25 8010.25
168.2 393.75 1335.042
 13 1
14 2
15 3 9.5
16 4
17 5
18 6
19 7
20 8
22 9.5
22 9.5
K=12-n(n+1) 23 11
24 12
25 13
26 14
27 15
28 16
31 17
33 18