A firm plans to issue a security (bond) that promises to pay a 10 percent (coupon) rate on the security

(face) value of $5,000. At the time of issue, the market (discount) rate for this type of security is 7 percent.

S‘7P READSHEET. Build an Excel spreadsheet to compute each requirement.

Required Present value of $(5,000) now Present value of $500 one year from now Present value of $500-two years from now Present value of $500 three years from now Present valueo f $500 four years from now Present value of $500 five years from now Present value of $5,000 five years from now Net present value (market value) of the bond, (a)-(g), using the SUM function Net present value (market value) of the bond, (a)-(g), using the NPV function Internal rate of return of the bond at its face value, (a)—(g), using the IRR function