Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me with the formulas i need to use x XBS ? 9 1 r X Bond Pricing - Excel FORMULAS DATA FILE HOME

image text in transcribedimage text in transcribedimage text in transcribed

please help me with the formulas i need to use

x XBS ? 9 1 r X Bond Pricing - Excel FORMULAS DATA FILE HOME INSERT PAGE LAYOUT REVIEW VIEW Sign In Calibri 11 A % Alignment Number Paste BIU- - A- Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font G33 fx A B F G H in 6 7 1 The Chestnut Street Company plans to issue $825,000, 10-year bonds that pay 7 percent 2 semiannually on March 31st and September 30th. 3 4 Information relating to this bond is found below: 5 Face Value: $ 825,000 Number of Years: 101 Stated Interest Rate: 79 Number of Payments per Year: 9 10 Required: 11 Calculate or provide the information requested using a formula or cell reference unless 12 you are instructed to use a specific function: 13 Assume the Market Interest Rate is: 8% 15 How many total payments or periods will this bond pay interest? 00 8 14 1) 16 a. 20 17 18 b. 19 20 21 When calculating the bond selling price, show the factor from the appropriate future or present value table (found in worksheets included in this workbook) that would be used to calculate the bond interest payments. 13.59033 22 23c Beneat question h but now use the VI OOKLID function ... 1 Present Value of Annuity of $1 Bond Pricing READY E 100% x x ? 1 FILE F 3 HOME H Calibri INSERT N Sign In - 11 Joli Bond Pricing - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW P M A R W A % Alignment Number Conditional Format as Cell Formatting Table Styles Styles M Paste BIU - Cells Editing Clipboard Font G33 for A B D F G H 23 C 24 E Repeat question b. but now use the VLOOKUP function. For the Lookup_value argument, your function should reference the result you calculated in question a. Your function should look for an exact match to the value used in the Lookup_value argument. =C5*07/08 25 26 27 28 d. 29 Calculate the amount of interest that will be paid on March 31st. $ 28,875 30 e Calculate the value of the interest payments that would be used when determining the bond selling price. =C7*C5/C8 31 32 33 f. 34 Calculate the selling price of this bond: 8. 35 36 37 Using the IF function, show the word "Premium" or "Discount" based on the selling price you calculated in letter f. =IF(C6>c4,"premium", discount 38 2) Assume the Market Interest Rate is: 6% 39 40 a. 41 When calculating the bond selling price, show the factor from the appropriate future or present value table (found in worksheets included in this workbook) that would be used to calculate the bond interest payments. 42 43 44 45 b. 46 Repeat question a. but now use the VLOOKUP function. Your function should reference the result you calculated in question 1 Present Value of Annuity of $1 Bond Pricing READY 100% Clipboard Font Styles > G33 X A B F G H 41 42 the appropriate future or present value table (found in worksheets included in this workbook) that would be used to calculate the bond interest payments. 43 44 45 b. 46 47 Repeat question a. but now use the VLOOKUP function. Your function should reference the result you calculated in question Number 1 letter a. ) Your function should look for an exact match to the value used in the Lookup_value argument. 48 49 50 C Calculate the amount of interest that will be paid on March 31st. 51 52 d. Calculate the value of the interest payments that would be used when determining the bond selling price. 53 54 55 e. 56 57 f. 58 59 60 61 62 TONTO Calculate the selling price of this bond: Using the IF function, show the word "Premium" or "Discount" based on the selling price you calculated in lettere. 1 Present Value of Annuity of $1 Bond Pricing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappett

23rd edition

1259536351, 978-1259536359

Students also viewed these Accounting questions