Question
Please help need to know how to calculate on excel. Show me the spreadsheet please. On January 1, 2012, Central City issued a 20-year serial
Please help need to know how to calculate on excel. Show me the spreadsheet please.
On January 1, 2012, Central City issued a 20-year serial bond to finance improvements to the water distribution system. A total of $80,000,000 face value of bonds were issued with coupon and maturity rates as follows:
Date | Rate | Amount |
December 31, 2023 | 3.0% | $5,000,000 |
December 31, 2028 | 3.5% | $5,000,000 |
December 31, 2033 | 4.0% | $10,000,000 |
December 31, 2034 | 4.1% | $10,000,000 |
December 31, 2035 | 4.2% | $10,000,000 |
December 31, 2036 | 4.3% | $10,000,000 |
December 31, 2037 | 4.4% | $15,000,000 |
December 31, 2038 | 4.5% | $15,000,000 |
Central City received $80,500,000 from the bond issue. Use a spreadsheet program to find the NIC and TIC interest rates for the bond issue. What would the values for NIC and TIC be if the interest rate were 4.2 percent for the bonds with a maturity before 2026 and 5 percent for the bonds with a maturity of 2026 or later? (Note: If you set up your spreadsheet with formulas, you should only have to change the interest rates to get the new NIC and TIC values.)
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