Bon Years to maturity Par value of bond Coupon rate Frequency interest paid per year Effective annual rate Calculation of periodic rate: Nominal annual rate Periodic rate Calculation of bond price: Number of periods Interest rate per period Coupon payment per period Par value of bond Price of bond 10 $1,000.00 11.00% 2 8.15% 0.00% $1,000.00 Formulas #N/A #N/A Formulas #N/A #N/A #N/A

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter11: Bond Pricing And Amortization (bonds)
Section: Chapter Questions
Problem 7R
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Bond valuation
Years to maturity
Par value of bond
Coupon rate
Frequency interest paid per year
Effective annual rate
Calculation of periodic rate:
Nominal annual rate
Periodic rate
Calculation of bond price:
Number of periods
Interest rate per period
Coupon payment per period
Par value of bond
Price of bond
10
$1,000.00
11.00%
2
8.15%
0.00%
$1,000.00
Formulas
#N/A
#N/A
Formulas
#N/A
#N/A
#N/A
Transcribed Image Text:Bond valuation Years to maturity Par value of bond Coupon rate Frequency interest paid per year Effective annual rate Calculation of periodic rate: Nominal annual rate Periodic rate Calculation of bond price: Number of periods Interest rate per period Coupon payment per period Par value of bond Price of bond 10 $1,000.00 11.00% 2 8.15% 0.00% $1,000.00 Formulas #N/A #N/A Formulas #N/A #N/A #N/A
Excel
Online Structured Activity: Bond valuation
You are considering a 10-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required
analysis to answer the question below.
X
Open spreadsheet
If you require an "effective" annual interest rate (not a nominal rate) of 8.15%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.
$
Transcribed Image Text:Excel Online Structured Activity: Bond valuation You are considering a 10-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet If you require an "effective" annual interest rate (not a nominal rate) of 8.15%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. $
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