Please answer all of the following problems by typing the numerical solution into the space provided beneath

Question:

Please answer all of the following problems by typing the numerical solution into the space provided beneath each question, also attach an Excel file

1. B Corporation has $1000 par value bonds with 8 years left to maturity, a stated annual coupon rate of 5 percent (with annual interest payments). Please calculate the value of these bonds using the market interest rates below:

What are these bonds worth today if the required market rate of return is 6 percent?

2. What are these bonds worth in a 5 percent market?

3. What are these bond worth in a 4 percent market?

4. What can you say about the relationship between the coupon rate, the market rate and the value of bonds?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...