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In an Excel spreadsheet and having the following options with semiannual payments, calculate the following: Bono A Bono B Settlement date 8/17/2021 8/17/2021 Due date
- In an Excel spreadsheet and having the following options with semiannual payments, calculate the following:
Bono A | Bono B | |
Settlement date | 8/17/2021 | 8/17/2021 |
Due date | 10/17/2025 | 12/17/2036 |
A cup of tea | 6.25% | 11.9% |
Market price | $1,113 | $1,300 |
Nominal value | 1,000 | 1,000 |
Required performance | 9.1% | 11.5% |
- With the Price function , calculate the intrinsic value of each bond.
- Are any of the bonds currently undervalued?
- How much accrued interest would you have to pay for each bond?
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