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Please show formulas P624 Bond valuation: Semiannual interest Find the value of a bond maturing in 6 years, with a $1,000 par value and a

Please show formulas

P624 Bond valuation: Semiannual interest Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 10% (5% paid semiannually) if the required return on similar-risk bonds is 14% annual interest (7% paid semiannually).

Problem 6-24

Settlement

(Think of Settlement as the beginning of the duration of the bond)

Maturity

(Think of Maturity as the end of the duration of the bond)

Rate

(Coupon Rate)

YTM

(Yield to Maturity or Required Rate fo Return)

Redemption

(Bonds Face Value, Par Value, or Fair Price; Note that is is $100, not $1,000. You make the adjustments by multiplying the answer by 10.)

Frequency

(Coupon payments are semiannul, so you put in a 2. If they are annual, then you input a 1)

Basis

(Always leave it blank)

Bond Price:

(The answer. But you need to multiply it by 10 to get the actual bond price.)

Multiply by 10

(Microsoft gives the bond price in 2 digits like in cell B111. You need to multiply it by 10 to get the actual bond price)

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