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Consider two bonds A and B with payments , where . Bond A has just been issued. Its face value is $ 1 , 0

Consider two bonds A and B with payments , where . Bond A has just been issued. Its face value is $1,000, it bears coupon rate of 7%, and it will mature in 10 years. Bond B was issued 5 years ago. This bond has $1,000 face value and bears a 13% coupon rate. When issued, this bond had a 15-year maturity, so its remaining maturity is 10 years. The yield to maturity for both bonds is 8%(see Cell B2 in the spreadsheet below). Using the Excel spreadsheet below write and explain the Excel formula used to calculate bond A and bond B prices in Cells B17 and E17, respectively:

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