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A company is considering issuing 1 0 year bonds with a face value of $ 1 , 0 0 0 . The coupon rate is
A company is considering issuing year bonds with a face value of $ The coupon rate is so the bonds will pay of the $ face value in interest every year, or $ However, because interest is paid semiannually in two equal payments, there will be coupon payments of $ each. The $ will returned at maturity. Finally, the required rate of returndiscount rate is assumed to be Prospective bond holders want to know the present value of the bonds.
Can you show formulas in excel to figure this out. I have the annual coupon rate at the required return at the years to maturity at and the payment frequency at I just need help with the PV function.
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