Question
Create an Excel spreadsheet to solve the following problems. 1. Daniel deposited a lump sum 10 years ago, earned 3% interest compounded monthly and now
Create an Excel spreadsheet to solve the following problems.
1. Daniel deposited a lump sum 10 years ago, earned 3% interest compounded monthly and now has $40,000. How much did he invest?
a. The NBC Company bond has a face value of $15,000, a life of 20 years and a coupon rate of 9%. If similar bonds have an interest rate of 10%, calculate the market price of The NBC bond. Is it selling for a premium, a discount or par?
b. The ABC Company bond has a face value of $20,000, a life of 10 years and a coupon payment of 1,600. If similar bonds have an interest rate of 7%, calculate the market price of The NBC bond. Is it selling for a premium, a discount or par?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
