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Excel Online Structured Activity: Bond valuation You are considering a 3 0 - year, $ 1 , 0 0 0 par value bond. Its coupon
Excel Online Structured Activity: Bond valuation
You are considering a year, $ par value bond. Its coupon rate is 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.
Open spreadsheet
If you require an "effective" annual interest rate not a nominal rate of how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. Bond valuation
Years to maturity
Par value of bond $
Coupon rate
Frequency interest paid per year
Effective annual rate
Calculation of periodic rate: Formulas
Nominal annual rate #NA
Periodic rate #NA
Calculation of bond price: Formulas
Number of periods #NA
Interest rate per period
Coupon payment per period #NA
Par value of bond $
Price of bond #NA
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