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C D E G H 1 Required rate of return 2 Years left to maturity 3 Annual interest payment 4 Future value (par value) B

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C D E G H 1 Required rate of return 2 Years left to maturity 3 Annual interest payment 4 Future value (par value) B Rate Nper Pmt FV have Enter your valug in rowe then enter in the c5 cell PV Rate, Nper, Pri, P- PVC1,C2,C3,C4) 5 6 Solve for present value (bond value) PV 7 8 9 Using the yellow cells in the spreadsheetsbove to compute the bond valuation. 10 Question 2 11 Sunn Co's bonds maturing in 7 years, pay 4 percent interest on a $1000 face value. However, interest 12 is paid semiannually. If you required rate of return is 5 percent, what is the value of the bond? How 13 would your answer change if the interest were paid annually? 14 15 16

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