Question

Excel Online Structured Activity: Bond valuation You are considering a 20-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. Open spreadsheet If you require an "effective" arinual interest rate (not a nominal rate) of 8.03 % , how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent Check My Work Reset Problem

Answer 1

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- 2x Σ AutoSum : A Fill 2 Sort & 2 Clear Filter Editing m Find & Select BOND - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Calibri -11AA = = = Dr Wrap Text General Ea Copy Paste BIU - D A SF Merge Merge & Center - Center $ Format Painter % % , 4:0 .00 :.: Conditional Format Cell Insert Delete Format Formatting as Table Styles Clipboard Font Alignment Number Styles Cells H10 - fix A E F G 1 2 3 YEARS 20 4. PAR VALUE 1000 5 COUPON RATE 11% 6 FREQUENCY 7 EAR 8.03% 8 9 PERIODIC RATE 10 NOMINAL RATE 7.8750% (=NOMINAL(B7,B6)] 11 PERIODIC RATE 3.9375% [=B10/2] 12 13 BOND PRICE 14 NUMBER OF PERIODS [=B3*B6] 15 INTEREST RATE PER PERIOD 5.50% [B5/B6] 16 COUPON PAYMENT PER PERIOD [=B4*B15] 17 PAR VALUE 1000 [=B4] 18 PRICE 1312.16 (=PV(B11, B14,-B16,-B17)] 19 M W ARRANT refund S4 S5 S6 S7 S8 S9 S11 Sheet12 Sheet13 S14 Sheet15 s16 SS12 Sheet18 Sheet19 Sheet1 SS3 SS4 Red ferences End Mode 40 55 R BOU 130% -_ O D O 9 * 410 ENG 28-11-2019