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Excel Online Structured Activity: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4
Excel Online Structured Activity: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8%. Bond C pays a 11% annual coupon, while Bond Z is a zero coupon bond. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet Assuming that the yield to maturity of each bond remains at 8% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Do not round intermediate calculations. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 3 2 $ +A 1 $ $ 0 $ $ Bond valuation Bond C Bond Z Length of maturity in years 4 4 Face value $1,000 $1,000 Yield to maturity 8.00% 8.00% Annual coupon 11.00% 0.00% Formulas Price of Price of Years to Maturity Bond C Bond Z Price of Bond C Price of Bond Z 4 #N/A #N/A 3210 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
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