1 Required rate of return 2 Years left to maturity 3 Annual interest payment 4 Future value (par value) 5 6 Solve for present value (bond value) 7 Rate Nper Pmt FV ave then enter in the CB cell PV(Rate, per, P, P- PVC1,C2,CB,CA PV 8 9. Using the yellow cells in the spreadsheet above to compute the bond valuation 10 Question 111 11 Trico bonds have an annual coupon rate of 8 percent and a par value of %1000 and will mature in 20 years. 12 If you requires a return of 7 percent, what price would you be willing to pay for the bond? What happens if you pay 13 for MORE the bond? What happens if you pay Less for the bond? 14 15 16 17