lec5_lab_xls.xlsx

	A	B	C	D	E	F	G	H	I	J
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2	Maturity	Zero Coupon Rates	Years		Maturity	Coupon	Bond Prices	Theo. Price	Difference
3	1 Day	4.40%	0.003
4	1 Month	4.50%	0.083
5	2 Months	4.60%	0.167
6	3 Months	4.70%	0.250
7	6 Months	4.90%	0.500
8	9 Months	5.00%	0.750
9	1 Year	5.10%	1.000
10	1 Year 2 Months	5.41%	1.167		1 Year 2 Months	5	103.70	103.70	0.00	<- Setting difference to zero using Goal Seek on Cell B10!
11	1 Year 9 Months	5.69%	1.750		1 Year 9 Months	6	102.00	102.00	0.00	<- Setting difference to zero using Goal Seek on Cell B10!
12	2 Years	5.79%	2.000		2 Years	5.5	99.50	99.50	0.00
13	3 Years	5.91%	3.000		3 Years	5	97.60	97.60	0.00
14						3	92.23	<-3/(1+B9)+3/(1+B12)^2+103/(1+B13)^3
15								Price of 3 year bond with 3% coupon
16
17	YTM for 3 year Bonds	YTM	Price	Theo. Price	Diff
18	B1	5.90%	97.600	97.600	0.000
19	B2	5.90%	92.227	92.227	0.000
20		-> Equal returns!
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