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You must incorporate as many formulas as necessary so that the worksheet automatically updates when the...

You must incorporate as many formulas as necessary so that the worksheet automatically updates when the market rate of interest is changed. Your Excel spreadsheet should work whether your bond results in a discount or premium. I should be able to manipulate certain data, for example, if I change the present value rates or market rate of interest rate, the formulas should still work correctly when determining the present value of the bond.

On January 1, 2018, Raymond Corporation sold 4% bonds having a maturity value of $5,000,000. The market yield for bonds of similar risk and maturity is 5%. The bonds are dated January 1, 2018, mature on January 1, 2021, and pay interest on June 30 and December 31 of each year.

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Answer #1

B2 X Vmaturity value of bond maturity value of bond annual coupon rate semi annual coupon rate semi annual coupon payment $ 100,000 2 5,000,000 4% 2% 4 annual market yield rate semi annual market yield rate 5% 2.50% 10 years to maturity half yearly periods to maturity 12 13 14 15 16 value of bonds $4,862,296.87

for formulas and calculations, refer to the image below -

B2 X-/ maturity value of bond maturity value of bond annual coupon rate semi annual coupon rate semi annual coupon payment C2*C4 5000000 0.04 C3/2 annual market yield rate semi annual market yield rateC7/2 0.05 10 years to maturity half yearly periods to maturity -C10*2 12 13 14 15 16 value of bonds -PV(C8,C11,C5,C2,0)

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