Par value of bond 1,000 Coupon rate Discount rate 6% Maturity in years 15 1 How much would you pay for this bond? Amount of loan 20,000 Annual interest rate 5% Life of loan in years 2 For the initial payment, how much of it is principal? 3 For the initial payment, how much of it is interest? 4 For the final payment, how much of it is principal? For the final payment, how much of it is interest?
Par value of bond 1,000 Coupon rate Discount rate 6% Maturity in years 15 1 How much would you pay for this bond? Amount of loan 20,000 Annual interest rate 5% Life of loan in years 2 For the initial payment, how much of it is principal? 3 For the initial payment, how much of it is interest? 4 For the final payment, how much of it is principal? For the final payment, how much of it is interest?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can someone help me with the excel formulas for these problems?
Transcribed Image Text:fx =SUM(A2:A62)
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Par value of bond
1,000
4%
Coupon rate
Discount rate
6%
Maturity in years
15
1
How much would you pay for this bond?
Amount of loan
20,000
Annual interest rate
5%
Life of loan in years
For the initial payment, how much of it is principal?
For the initial payment, how much of it is interest?
For the final payment, how much of it is principal?
For the final payment, how much of it is interest?
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%24
2.
3.
4-
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