Bond valuation$-$Semiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. $($Click on the icon here in the $($ Try again.

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, $B_0,$ of a bond paying interest semiannually is given by the

following equation:

$B_0=\frac{1}{2}{\displaystyle \underset{t=1}{\overset{2n}{}}}\frac{1}{(1+\frac{r_d}{2}{)}^t}+M[\frac{1}{(1+\frac{r_d}{2}{)}^{2n}}],$

where $B_0=$ value of the bond at time $0$

$\frac{\text{I}}{2}=$ semiannual interest paid in dollars

$2n=$ number of $6-$month periods to maturity

$M=$ par value in dollars

$\frac{r_d}{2}=$ semiannual 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 semiannual bond using a

financial calculator, you will need to input the total number of $6-$month periods for

$N,$ the bond's par value for $FV,$ the semiannual interest payment for $PMT,$ and the

semiannual YTM for $\frac{\text{I}}{Y},$ and then compute $PV$ to find the bond price. When

solving for the price of a semiannual bond using an Excel spreadsheet, you will

need to enter the values of Rate, Nper, Fv$,$ Pmt$,$ and Type into the present value

function. Remember that the spreadsheet uses the semiannual interest rate

for Rate, not the annual YTM rate.contents of the data table below into a spreadsheet.$)$