Homework Answers
a)
Price of bond at 4.70%:-
=PV(4.7%,18,32,1000)
=820.47
HPR =(D2-1000+32)/1000 = -14.7527%
b)
Price of bond at 2.10%:-
=-PV(2.1%,18,32,1000)
=1163.47
HPR =(1163.47-1000+32)/1000 =19.5472%
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