CORPORATE FINANCE FINANENG 335 TVM Project Please use Excel to answer the following questions and show all your work including formulas/calculations. When solving problems in a spreadsheet, make sure to format the output very carefully in order to ensure that it is legible and presentable.

4. Bonds: Dillards Department Stores issued about $40 million in bonds in 2008. They were recently priced well below par. The bonds mature in about 19 years from today, have a coupon rate of 7.875%, and a yield to maturity of about 12.4%. Assume for simplicity that the coupons are paid annually, and the company will continue to make payments as promised. Using Excel, assume the yield to maturity stays at 12.4% and calculate the price of the bond today and each year from today through maturity. Present your numerical results and also graph them. The graph will help you visualize the effects of time on bond prices.