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Excel Online Structured Activity: Bond valuation You are considering a 10-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually.

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Excel Online Structured Activity: Bond valuation You are considering a 10-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet If you require an "effective" annual interest rate (not a nominal rate) of 11.14%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. E F D B 10 $1,000.00 10.00% 2 11.14% A 1 Bond valuation 2 3. Years to maturity 4 Par value of bond 5 Coupon rate 6 Frequency interest paid per year 7 Effective annual rate 8 9 Calculation of periodic rate: 10 Nominal annual rate 11 Periodic rate 12. 13 Calculation of bond price: 14 Number of periods 15 Interest rate per period 16 Coupon payment per period 17 Par value of bond 18 Price of bond Formulas #N/A #N/A Formulas #N/A 0.00% #N/A $1,000.00 #N/A

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