F370 Lecture 6 Excel

.xlsx
School
Indiana University, Bloomington **We aren't endorsed by this school
Course
BUS F370
Subject
Finance
Date
Oct 16, 2023
Pages
3
Uploaded by DeaconChinchillaPerson860 on coursehero.com
Lecture 6 Excel $ 1,000 $ 12.50 $ 12.50 $ 12.50 r 1.194% 0 1 2 3 ($1,001.64) $ 1,000 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 $ 6.25 r 1.194% 0 1 2 3 4 5 6 ($1,001.65) $ 1,000 $ 12.50 $ 12.50 $ 12.50 0 1 2 3 r 1.25% ($1,000.00) r 2.00% ($978.37) $ 1,000 $ 12.50 $ 12.50 $ 12.50 $ 12.50 $ 12.50 ... $ 12.50 0 1 2 3 4 5 ... 30 r 1.25% ($1,000.00) r 2.00% ($832.03)
Discuss Yield To Maturity 1.194% Discuss Current Yield 1.248% Cash flows in current time period Semi-annual payments on a 10-year, 5% Coupon Bond Faster Compounding, so Review EAR 0 1 2 3 4 ... r 6% EAR equals Review Rea What is rea inflation of 1 + real Longer maturity, greater Int rate risk higher return (1.03) 2 - 1
d $ 1,000 $ 25 20 al Rate of Return al rate of return if you expect f 2.00%? equals (1 + nominal)/(1 + inflation rate) (1.0609/1.02) - 1
Page1of 3
Uploaded by DeaconChinchillaPerson860 on coursehero.com