Assume a hypothetical age that has not been assumed by other students. Assume you would like to invest in a zero-coupon bond in order to have $1000,000 in your retirement account when you get to the retirement age of 67. You found a zero-coupon bond yielding 6.5 percent semiannually. The face value of this bond is $5,000.

 

The maturity of this bond is 67 minus you actual or hypothetical age.

 

Assume your actual or hypothetical age that has at least a month in it. ( For example, I am 23 years old is not acceptable, it does not have any months, 21 years and one month or 2 or 11 months are acceptable) to the closest month, for example, if you are 24 years, 9 months, and 10 days, then use 24 years and 9 months. Thus, maturity of bond = 67 - 24.75 years.

 

Question: Assume an actual or hypothetical age that has not been chosen by other students and estimate how much you must invest today to achieve your goal of having $1000,000 in your retirement account at age 67.

 

Please use Excel to answer this question. Provide the detail (formula) of your answer. Attaching Excel for supporting your answers.