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Please show how to solve using EXCEL ONLY. 3. Find the price of a corporate bond maturing in 5 years that has a 5 percent
Please show how to solve using EXCEL ONLY.
3. Find the price of a corporate bond maturing in 5 years that has a 5 percent coupon (annual payments), a $1,000 face value, and an AA rating. A local newspapers financial section reports that the yields on 5year bonds are AAA, 6 percent; AA, 7 percent; and A, 8 percent.
4. What is the yieldtomaturity of a corporate bond with a 3year maturity, 5 percent coupon (semiannual payments), and $1,000 face value if the bond sold for $978.30?
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