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

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The Bond Value Will Be 100% 6.48574 × 2 = 12.97148 8%/2 = 4% 7.5% 102.531%

100 8.47148 × 2 = 16.94296 4 7.5 103.094 100 10.519 × 2 = 21.0380 4 7.5 103.594 100 14.87875 × 2 = 29.7575 4 7.5 104.437 AppendixLO1