FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Face Value of Bond : 1,000
Annual Coupon Rate: 5%
Required Return: 8%
Years to Maturity:
Payment Frequency: semiannually
I need help to find the present value of bond using excel
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- Find the value of the following two corporate bonds then discuss how the value of the bonds change when time maturity changesarrow_forwardBond valuation-Annual interest Calculate the value of the bond shown in the following table, assuming it pays interest annually. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Par value Coupon interest rate Years to maturity Required return $100 12% 7 8% The value of the bond is $ (Round to the nearest cent.)arrow_forward31 ation An 8%, 8-year bond pays annual coupons and has 6 years to maturity. If the market interest rate is 9%, calculate the price of this bond. Show the (abbreviated) time line, the key entries/steps of FCS, and the (abbreviated) equation/expression of NS. Typing tips:arrow_forward
- 4) A 10 year bond with $50, 000 face value has semiannual coupon rate 4% and semiannual yield rate 2%. Fill out the following amortization table. Principle Outstanding t Payment Interest герaid Balance 1 2 3 12arrow_forwardFace value=$1000 Annual coupon payment=$60 (First payment due in 1 year) Internal yield to maturity = 7% Term= 3 years Compute the Macaulay duration of the bond.arrow_forwardWhat is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C n-M + (1+y) (1+y) с Current Bond Price Macaulay Duration tx C + Macaulay = Duration Formula (1+ y) nxM (1+ y)n Current Bond Price 13arrow_forward
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