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2. 10-year Treasury bonds have a coupon rate of 2.2 % and par value of $1000,...

2. 10-year Treasury bonds have a coupon rate of 2.2 % and par value of $1000, and yield to maturity of 3%. 2A. What is the annual return on this bond as a percentage. 2B. Explain the yield to maturity.

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Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text General ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard AU29 AT Font Alignment Number Styles Cells Editing AU AV AW AY BD BE BF BG BH 28 29 30 31 32 COUPON YTM 2.20% 1000 YEARS 34 35 36 37 38 39 PRICE = E931.76 EXCEL-PV(AX31,AX33,-AX30*AX32,-AX32) ANNUAL RETURN = INTEREST/PRICE- 2.36% 22/931.76 YTM IF SOMEONE PURCHASES BOND TODAY AT A PRICE OF $931.76 AND KEEPS IT TILL MATURITY THAT IS FOR FULL 10 YEARS, HE WILL RECEIVE ANNUAL RETURN OF 3% OVER 10 YEARS 3% 41 42 43 45 46 (4 トト , NOTE BIDDING, UNDERWRITING . . EUAC AW PM LIFE / LP, Ip, MRP, INFLATION YIELD ( WARRANTrefund bond , CLEAN INVOICE PRICE Sheet1 Sheet3 Sheet4. 04:41 15-01-2019

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