FINC 3304 – Business Finance
Mini Project 2
Bond Valuation
The goal of this mini project is to explore the topic of bond valuation. The mini project requires you to work
in Excel with the provided spreadsheet. Be sure to fill in the yellow boxes in the Excel file for full credit. In
addition, type up a report in Word with an introduction (description of the mini project), findings (answer
assignment questions, plots, etc.), and conclusion (summary). Your grade will depend on both quantity and
quality. Upon completion, please submit both your Word report and Excel file to blackboard. Each question
(A, B, C, D, E, F, and G) is worth 10 points (total of 70 points), the report 15 points, and the Excel file 15
points.
Bond Valuation
Assume that a 25-year, 9% coupon bond with semiannual payments has a par value of $1,000 and may be
called in 5 years at a call price of $1,040. The bond currently sells for $1,100 (assume that the bond has just
been issued). Employ the excel file to answer the following questions:
Part 1: Bond Yield
A) Calculate the Periods to Maturity, Periodic Payment, and Periods until Callable (10 Points)
B) Calculate the periodic Yield to Maturity using the Excel function and the Annualized Yield to
Maturity. The Annualized Yield is equal to the periodic YTM times the number of periods (10
Points)
C) Calculate the Annual Coupon Payment, Current Price, and the Current Yield. The current yield
is defined as Annual Coupon payment/Current Price (10 Point)
D) Calculate the Capital Gain or Loss Yield. Capital Gain or Loss Yield = Annualized YTM – Current
Yield (10 Points)
E) Calculate the Periodic Yield to Call using the Excel function and the Annualized Yield to Call (10
Points)
Part 2: Relation between Bond Value and Market Interest Rate
F) Calculate the Bond Value using the Excel function and create a bond value table (be sure to fill
in the table) for different interest rates using the Excel function (10 Points)
G) Graph the actual bond value considering call likelihood (y-axis) against the annual market
interest rate (x-axis). Label the y-axis, x-axis, and chart title (10 Points)
Excel Note: If you want to lock in a cell reference, use the $ symbol. For example, if you would like to keep
the value of cell A5 constant for use in a formula, reference it as $A$5.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Reviews
Editing Support
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Reviews
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.