valuation of financial instruments

Word document of 700–1,000 words with attached Excel Spreadsheet showing calculations

• Explain the relationship observed between ratings and yield to maturity.
• Explain why the coupon rate and the yield to maturity determine why the bonds would trade at a discount, premium, or par.

After completing the 3 tables, explain your findings and why your calculations coincide with the principles related to bonds that were presented in the Phase. Be sure to address the following:

• Explain the relationship observed between the required rate of return, growth rate and the dividend paid, and the estimated value of the stock using the Gordon Model.
• Explain the value and weaknesses of the Gordon model.
• Explain the how the price-to-earnings model is used to estimate the value of the stocks.