1. Learn
    2. /
  2. Courses
    3. /
  3. Bond Valuation and Analysis in R

Exercise

Find AAA bond yields as of September 30, 2016

In this comprehensive example, you will value a bond with a $100 par value, 3% coupon rate, and 8 years to maturity. This bond was rated Aaa by Moody's and it was issued on September 30, 2016. You have determined that this bond's yield is comparable to the yield of bonds with a Aaa rating.

In this exercise, use the Quandl() command (from the Quandl package) to obtain the yield of Moody's Aaa index on September 30, 2016 and store that value in an object labeled aaa_yield.

Instructions

100 XP
  • Use library() to load the Quandl() package.
  • Use the Quandl() command to obtain Moody's AAA index yield ("FED/RIMLPAAAR_N_M") data. Save this to aaa.
  • Use subset() on aaa to keep only the yield for September 30, 2016. Save this to aaa_yield.
  • Convert aaa_yield to decimals by using a call to as.numeric() and dividing by 100.