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Haygood Corp. purchased ten $1000 5% bonds of Energy Corporation when the market rate of interest...

Haygood Corp. purchased ten $1000 5% bonds of Energy Corporation when the market rate of interest was 8%.Interest is paid​ semiannually,and the bonds will mature in 10 years. Can you show me how to calculate this into excel using the PV function

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Answer #1

Using the PV function the price of 1 bond is calculated as:-

=PV(rate,nper,pmt,fv)

=PV(8%/2,10*2,5%/2*1000,1000)

=796.15

10 bonds price =7961.45

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