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I'm having trouble understanding bond valuations. I tried using my Excel spreadsheet but I'm not sure if I'm plugging in the information correctly. I keep
I'm having trouble understanding bond valuations. I tried using my Excel spreadsheet but I'm not sure if I'm plugging in the information correctly. I keep getting the wrong answers. Here's an example:
Two years ago, anorganizationissued a $1,000 face value, 10-year bond. The bond has a yield to maturity of 12 percent and a coupon rate of 6 percent. Interest is paid semiannually. The bond presently sells for $.Calculate to two decimal points using the following formula:=PV(rate, nper, pmt, [fv], [type]).
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