14. Using a Spreadsheet to Calculate Bond Values:

What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate (paid semiannually) and a required return of 7.5 percent if the bond is 6.48574, 8.47148, 10.519, and 14.87875 years from maturity? ( LG 6-2 )

Face Value Total Payments Periodic Coupon Payment Required Return ⇒
The Bond Value Will Be 100% 6.48574 ⫻ 2 ⫽ 12.97148 8%/2 ⫽4% 7.5% 102-17%
100 8.47148 ⫻ 2 ⫽ 16.94296 4 7.5 103-03 100 10.519 ⫻ 2 ⫽ 21.0380 4 7.5 103-19 100 14.87875 ⫻ 2 ⫽ 29.7575 4 7.5 104-14