Question
Calculate the price of a bond with these characteristics. In each case, assume the coupon rate is 6%, coupon payments are made every six months
Calculate the price of a bond with these characteristics. In each case, assume the coupon rate is 6%, coupon payments are made every six months (twice per year), and the par value (maturity payment) of the bond is 1,000.
1. years to maturity = 5.0; market interest rate = 0.03.
2. years to maturity = 5.0; market interest rate = 0.05.
3. years to maturity = 5.0; market interest rate = 0.09.
4. years to maturity = 8.0; market interest rate = 0.03.
5. years to maturity = 8.0; market interest rate = 0.05.
6. years to maturity = 12.0; market interest rate = 0.05.
7. years to maturity = 12.0; market interest rate = 0.09.
8. years to maturity = 15.0; market interest rate = 0.03.
9. years to maturity = 15.0; market interest rate = 0.05.
10. years to maturity = 15.0; market interest rate = 0.09. Please show me Excel formula thank you.
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