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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
1. Write a spreadsheet program to construct a series of bond tables that show the present value of a bond given the coupon rate, maturity, and yield to maturity. Assume that coupon payments are semiannual and yields are compounded semiannually.
2. Find the arbitrage opportunity (opportunities?). Assume for simplicity that coupons are paid annually. In each case the face value of the bond is $1,000.
|
Bond |
Maturity (year) |
Coupon, $ |
Price, $ |
|
A |
3 |
0 |
751.30 |
|
B |
4 |
50 |
842.30 |
|
C |
4 |
120 |
1,065.28 |
|
D |
4 |
100 |
980.57 |
|
E |
3 |
140 |
1,120.12 |
|
F |
3 |
70 |
1,001.62 |
|
G |
2 |
0 |
834.00 |
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