a. Find the price for the bond in theYoars toData TableCoupon Rate11%Par Value$5,000.0010(Click on the following icon in order to copy its contents into a spreadsheet.)Years toMaturityYiold toMaturity11%PriceCoupon Rate11%Par Valuo$5.000.0010$1.000.0012%305%$1,000.009%3010%$1,000.0010%5.8%PrintDone a. Find the price for the bond in the following table: (Round to the nearest cent.)Years toMaturityYield toMaturityPricePar ValueCoupon Rate$5,000.0011%1011%%24

Bonds are the financial instruments that are used by companies for the purpose of raising funds and…

a. Find the price for the bona in uhe ToIOWng Yoars to Data Table Par Value Coupon Rate Maturity $5,000.00 11% 10 (Click on the following icon e in order to copy its contents into a spreadsheet.) Yoars to Maturity Yield to Maturity 11% 5% Price Par Valuo $5.000.00 $1,000.00 $1,000.00 Coupon Rato 11% 12% 9% 10% 10 30 30 10% $1,000.00 8% Print Done

a. Find the price for the bona in uhe ToIOWng Yoars to Data Table Par Value Coupon Rate Maturity $5,000.00 11% 10 (Click on the following icon e in order to copy its contents into a spreadsheet.) Yoars to Maturity Yield to Maturity 11% 5% Price Par Valuo $5.000.00 $1,000.00 $1,000.00 Coupon Rato 11% 12% 9% 10% 10 30 30 10% $1,000.00 8% Print Done

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 8R: a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it...

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a. Find the price for the bond in the following table: (Round to the nearest cent.) Years to Maturity |0 Data Table Par Value Coupon Rate $1,000.00 6% 15 (Click on the following icon e in order to copy its contents into a spreadsheet.) Years to Maturity Yield to Maturity Price Coupon Rate 6% Par Value $1,000.00 $5,000.00 $5.000.00 $1,000.00 15 8% 9% 9% 5% 10 5% 11% 15 10% Print Done
K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {
a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it be if there were only 9 or 8 years to maturity? Use the worksheet to compute the bond issue prices and enter them in the spaces provided. Bond issue price (9 years to maturity) __________________ Bond issue price (8 years to maturity) __________________ b. Compare these prices to the bond-carrying values found in the effective interest amortization schedule you originally printed out in requirement 3. Explain the similarity. c. Click the Chart sheet tab. The chart presented shows the price behavior of this bond based on years to maturity. Explain what effect years to maturity has on bond prices. Check your explanation by trying 8% as the effective rate (cell E10) and clicking the Chart sheet tab again. Also try 9%. When the assignment is complete, close the file without saving it again. Worksheet. Modify the BONDS3 worksheet to accommodate bonds with up to 20-year maturity. Use your new model to determine the issue price and amortization schedules of a 2,000,000, 18-year, 10% bond issued to yield 9%. Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as BONDST. Hint: Expand both amortization schedules to 20 years. Expand the scratch pad to 20 years. Modify FORMULA1 in cell F17 to include the new ranges. Chart. Using the BONDS3 file, prepare a line chart that plots annual interest expense over the 10-year life of this bond under both the straight-line and effective interest methods. No Chart Data Table is needed. Put A23 to A32 in the Label format and then select A23 to A32, D23 to D32, and B40 to B49 as a collection. Enter all appropriate titles, legends, formats, and so forth. Enter your name somewhere on the chart. Save the file again as BONDS3. Print the chart.
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