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QUESTION 16 Use the excel spreadsheet to calculate the price of the 10 year AUD 1000 bond, with AUD 100 coupons for the case that
QUESTION 16 Use the excel spreadsheet to calculate the price of the 10 year AUD 1000 bond, with AUD 100 coupons for the case that the market yield (discount rate) is 10%. Always make an educated guess first: Should the price be higher or lower than with AUD 140 coupons? Because coupon / face value is now also 10%, you should be able to determine the price even without a calculator. Think if this bond is more, less, or equally attractive than putting AUD 1000 into a bank account at the market yield
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