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(Excel Formulad You are considering an investment in the bonds of the Front Range Electric Company. The bonds pay interest quarterly, will mature in 15

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(Excel Formulad You are considering an investment in the bonds of the Front Range Electric Company. The bonds pay interest quarterly, will mature in 15 years and have a coupon rate of SX on a face value of $1.000. Currently, the bonds are selling for $960. Assume that the settlement for your purchase is 7/30/2018, the maturity date k 7/30/2032 Type in the Excel formulas you should enter in the cells with bold borders in the table below to solve the following problem X. Il your required rate of return is 55% for bonds in this risk class, what is the highest price you would be willing to pay for the bond (Use PRICE function (3 Points b. What is the current yield of these bonds? 12 Point c. What is the yield to maturity on these bonds If you purchase them at the current price? Use YIELD function Points) d. If the bonds can be called in three years (7/30/2021) with a call premium of 4% of the face value. what is the Vield to call (Use VIELD Function (3 Polote Create an F statement in Cell B36 to show whether these bonds are undervalued, overvalued, or fairly alred. Points B 1 Front Range Electric Company Bonds 2 Settlement Date 7/30 2018 3 Maturity Date 7/30/2033 4 Call Date 7/30/2021 5 Price $900 6 Face Value $1,000 7 Call Premium 4.00% 8 Coupon Rate 5.00% 9 Frequency 4 10 Required Return 5.50% 11 12 a. Value 13 b. Current Yield 14 . Yield to Maturity 15 d. Yield to Call 16 c. If Statement

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