P 157 54 MARRASTOSSSREN 55 56 57 58 59 A B D E F G H 46 New Example: The maturity is reduced to 5 years, the coupon rate is 11%, and the required return is 10%. 47 48 49 50 51 52 53 60 61 62 63 64 65 66 67 68 69 70 71 72 XO Read Copy P Times New Roman-10-AA. General BIU---A-Marge Center $ Solution: Par Value Maturity Coupon Rate Required rate Interest Present Value of the bond. Definition Bond Valuation Table: Coupon rate Required return Time INT Total Cash Flows PV of Cash Flows Loan Bond Score Aconsibility inumtiga Type here to search Today 11% 10% Higment Notation: Inputs: par 1,000 t 5 11% 0 CR r INT B Year 1 11 10.00% ? ? Year 2 Number 2 Year 3 3 Year 4 Solving with the Excel Wizard or the Net Present Value (NPV) Formula: Conditional Format C Formatting 4 Year 5 1 Enter the coupon rate (CR) in cell E61 and the required return (r) in cell E62. Or you can enter -G52 in cell E61, and G53 in cell E62. 5 D K IntDelete Format Cell Points(2) Points(2) Points(3) A894 S&F& Anal Data M 0 0 0 91F Clear N 4 My A O 1201 AM 4/23//2022 86 87 X 100 101 102 103 104 105 106 107 108 109 110 Copy format Clipboard A S Times New Roman-10-AK ===> B 88 Test Your Skills: 89 90 91 92 93 94 95 96 97 98 99 $ Bond Score F Type here to search N A. & Centr D Coupon rate Required return Time INT M Total Cash Flows use NPV PV of Cash Flows B Definition Par Value Maturity Coupon Rate Required rate Interest Present Value of the bond. E W Today 0 Given the following inputs, create a spreadsheet table from the outline below. Notation: Inputs: par 1,000 " 3 5% 8.00% ? ? CR r INT B Year 1 Genera G 1 Year 2 2 Number Hint: Follow the steps in problem 1 H 18