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this the effective yield the existing bond yield

This the effective yield the existing bond yield

SA_BondValuation_Solutions

SA_BondValuation_Solutions

SA_BondValuation_Solutions

SA_BondValuation_Solutions

SA_BondValuation_Solutions

30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

 15.
B C D
H I J Page: 9

We now calculate the value of USD bond based on the above YTM. Since the USD bond pays interest annually, we must determine the

effective annual yield of DSI.

 ffe
alu
ond		 ctiv e o
Fa		 e a f U ce nn
SD Va		 ual B
lue

Re

nu e P
d

 eld .

at

DS
oup
nnu um
aym		 on
al
ber en		 Ra
Int
of
ts P		 te
ere
Ye er		 st P ars Ye me
Ma

T
R

P

ym d R

ter
tur
ity
aid
P
P		 o ric f F
e of		 ace th V
e B		 lu
on
as h R
. Y

. P

 ur i.

9.46% Therefore, USD bond must provide
this return to the investor.
9.00% Settlement date:
$90.00 Maturity date:
20 Price:

$959.02 =PRICE(G37,G38,C37,C42,C36/10,C40)*10
1

Note:
20

SA_BondValuation_Solutions

1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20
B C D E F G H I J K

10

$4.46

END

Solve For PMT = $59.79
26
27 28

29 30 31 32 33 34 35 36 37 38 39 40

SA_BondValuation_Solutions

$877.90 $912.33

12.50%

 F G H I J K
12.50%

16

-$900.65
$52.50
$1,000.00
1
1
END
55 $521.57

$379.09 $900.65
12.50%

SA_BondValuation_Solutions

SA_BondValuation_Solutions

SA_BondValuation_Solutions

SA_BondValuation_Solutions

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