Interest rate and yield to maturity. You can use excel or financial calculator:
1. What is the fair value of a 2-year $100,000 T-note with no coupon payment if the current market interest rate is 10%?
2. If you obtain a 30 year mortgage loan of $100,000, find your monthly payment if annual interest rate is 3%, 5%, 10%.
3. You want to buy a 10% coupon bond with a face value of 100000 that yields 6% to maturity of 5 years. What is the price of the bond you want to buy?
Please find tutorial and help related to how to calculate bond value, interest rates and YTM in the attached files.
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Process to Calculate Fair Value in Excel
Fair value of T-note can be computed by using PV formula in excel that ...
The expert examines the interest rates and yield to maturity.