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Please advise on how to solve this using Excel and please show the formulas. Thanks! On December 3 1 s t , 2 0 1

Please advise on how to solve this using Excel and please show the formulas. Thanks!
On December 31st,2013, you decided to buy a 40-year Government of Canada bond. The bond had a
face value of $100,000. The annual coupon rate on the bond was 5.40%. Coupons were paid semi-
annually. On December 31st,2013, the yield to maturity on Government of Canada bonds was 4.70%
per year (APR compounded semi-annually). The term structure of interest rates was flat.
After holding the bond for 10 years, you decided to sell it on December 31st,2023. Prior to selling
the bond, you received the December 31st,2023 coupon payment. On December 31st,2023, the yield
to maturity on Government of Canada bonds had decreased to 3.30% per year (APR compounded
semi-annually). The term structure of interest rates was flat.
a) How much did you pay for the bond on December 31 st,2013?
b) How much did you sell the bond for on December 31st,2023?
c) What was the effective periodic rate of return that you earned on your investment during the 10
years?
d) What was the effective annual rate of return that you earned on your investment during the 10
years?
Please advise on how to solve this using Excel and please show the formulas. Thanks!
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