Excel Online Structured Activity: Bond valuationYou are considering a 30-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. The data has been collected in theMicrosoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.☑Open spreadsheetIf you require an "effective" annual interest rate (not a nominal rate) of 9.18%, how much should you be willing to pay for the bond? Do not roundintermediate steps. Round your answer to the nearest cent.$Check My WorkReset Problem

Step 1: Given Value for Calculation Compound = n = Semiannually = 2Time = t = 30 * 2 = 60Face Value…

Answered: Excel Online Structured Activity: Bond…

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 7R

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Please use finance calculator An issue of bonds with par of $1,000 matures in 8 years and pays 9% p.a. interestsemi-annually. The market price of the bonds is $955 and your required rate of returnis 8%.(a) Calculate the bonds expected rate of return.(b) Calculate the value of the bond to you, given your required rate of return.(c) Should you purchase the bond? (State the reason for your decision.)
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ou are considering a 30-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" annual interest rate (not a nominal rate) of 11.29%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. $ fill in the blank 2
Create an essay using the following information: Assume you are evaluating whether to purchase the following $1,000 face value bonds: Co. X bond with a 6% coupon rate that matures in 9 years. Co. Y bond with an 11% coupon rate that matures in 7 years. Also, you may wish to review https://t.ly/wJqNM and https://t.ly/2EX2k about corporate junk (junk bonds). Given the scenario and information about junk bonds, address the following: Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid annually. Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid semi-annually. Value these bonds assuming a market rate on similar risk bonds is 12% and interest is paid annually. Assuming both bonds were issued at the same time, why would the Co. Y bond pay a higher coupon rate?
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Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Show Transcribed Text B) How could you construct a 1-year forward loan beginning in year 3? (Face Value) C) How could you construct a 1-year forward loan beginning in year 4? (Face Value) Required A Required B Complete this question by entering your answers in the tabs below. Face value Rate of synthetic loan → Show Transcribed Text Price $ 970.93 898.39 836.92 How could you construct a 1-year forward loan beginning in year 3? Note: Round your Rate of synthetic loan answer to 2 decimal places. Required A 776.20 685.42 Required B Face value Rate of synthetic loan Required C 7.85 % Required C How could you construct a 1-year forward loan beginning in year 4? Note: Round your Rate of synthetic loan answer to 2 decimal places. Ċ 13.29 %
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Bond Valuation-Semiannual Interest: Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. Bond Per Value Coupon Interest Rate Years to Maturity Required stated annaul return A $1,000 9% 9 11% B 500 13 20 12 C 500 12 5 15 The value of bond A is? The value of Bond B is? The value of Bond C is? Remember to round all answers to the nearest cent.
Bond valuation-Semiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Coupon interest rate 11% Years to maturity 9 Required stated annual return 11% 11 15 14 15 6 15 The value of bond A is $. (Round to the nearest cent.) Bond A B C Par Value $1,000 1,000 100

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