b. Calculate the presert value of bond B if the required rate of rearn is (1) 6%,(2)9%, and (3)125 (Boend so the neares cent) The value of a bond is the present value of the payments its issuer is contractually obligated to make, from the current time until it matures. The basic model for the value, B0, of a bond is given by the following equation: B0=It=1n(1+rd)t1+M[(1+rd)n1] The value 0 where B0= value of the bond at time 0 f= annual interest paid in dollars n= number of years to maturity M= par value in dollars rd= required return on a bond Alternatively, you can find the bond price using a financial calculator or an Excel spreadsheet. When solving for the price of a bond using a financial calculator, you will need to input the total number of payments for N, the bond's par value for FV. the periodic coupon payment for PMT, and the annual YTM for L, and then compute PV to find the bond price. When solving for the price of a bond using an Excel spreadsheet, you will need to enter the values of Rate, Nper, Fv, Pmt, and Type into the present value function