Question

Bond prices. Price the bonds from the following table with semiannual coupon payments: E. a. Find the price for the bond in the following table: (Round to the nearest cent.) Years to Yield to Coupon Par Value $1,000.00 129 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Years to Matu Price 25 ? Par Value $1,000.00 $5,000.00 $5,000.00 $1,000.00 Coupon Rate 12% 6% 9% Yield to Maturity 5% 9% 10% 11% ? 25 20 7% 15 Print Done

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

2 A E F G ID Semiannual Coupon Payment Par Value Coupon rate Years to Maturity Price Yield to Maturity 5% $1,000.00 12% 25 6% 25 9% $5,000.00 $5,000.00 $1,000.00 $1,992.68 $3,517.85 $4,571.02 $709.33 L 9% 7% 20 15 10% 11%

Cell reference -

A DE в с Coupon Payment Semiannual Par Value Coupon rate Years to Maturity Yield to Maturity Price 0.12 25 0.05 =PV(E4/2,D4*2,-C4/2*B4,-B4,0) | 0.06 0.09 =PV(E5/2,D5*2,-C5/2*B5,-B5,0). 0.09 20 =PV(E6/2,D6*2,-C6/2*B6,-B6,0) 0.07 15 10.11 =PV(E7/2,D7*2,-C7/2*B7,-B7,0) 1000 5000 5000 1000 25 0.1

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.