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Show all work. Use an excel spreadsheet to prepare this assignment. Show what excel equations you used. Problem 3 A company issues bonds with a
Show all work. Use an excel spreadsheet to prepare this assignment. Show what excel equations you used.
Problem 3
A company issues bonds with a coupon rate of 8%, due in 10 years. The total bonds issued equals $1,000,000. On the day of issuance, other bonds are selling at 7%. Interest is paid annually.
- Will these bonds need to be issued at par, premium or discount?
- What is the price for the package?
- If bonds are issued for $1,000 each, what is the price of an individual bond?
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