D M A B E F G . L 1 Excel Assignment (DUE October 2nd): 2 3 1. Value a perpetuity that pays 8% (=$40,000) per year, paid semiannually. 4 5 6 7 8 9 10 2. What is the value of a 10-year Annuity that pays 8% (+$40,000) per year, if the current interest rate is 4% for all time intervals, with semiannual compounding? 11 12 13 14 15 16 17 3. What is the value of a 3-year Bond that pays 6% annual coupon semi-annually, if the Bond's yield is 5%? 18 19 20 21 22 23 24 4. Build a Chart that compares the rates of 2-yr vs 10-yr and 2 yr vs 30 yr Bonds. (Calculate Rate Spreads from data in Interest Rates page.) 25 26