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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 years,
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 9%. Bond C pays a 10% 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. THI Open spreadsheet Assuming that the yield to maturity of each bond remains at 9% 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 $ $ LINE 1 $ $ 0 $ $ File Home Insert Formulas Data Review View B1 C E F G H A Bond valuation 1 2 3 4 5 6 7 8 Length of maturity in years Face value Yield to maturity Annual coupon Bond C 4 $1,000 9.00% 10.00% Bond Z 4 $1,000 9.00% 0.00% Formulas Price of Bond C Price of Bond Z Years to Maturity 4 3 2 Price of Bond C #N/A #N/A #N/A #N/A #N/A Price of Bond Z #N/A #N/A #N/A #N/A #N/A ON Time Paths of Bonds C and Z Bond Value $350 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Bond c -Bond z $0 4 3 2 1 0 Years Remaining Until Maturity
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