Question
The Chestnut Street Company plans to issue a bond semiannually on March 31st and September 30th. The Controller has asked you to calculate information about
The Chestnut Street Company plans to issue a bond semiannually on March 31st and September 30th. The Controller has asked you to calculate information about the bond assuming two different market interest rates in the Excel Simulation below. The present value factor tables are included in the first four tabs of the Excel Simulation. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
I only need C, E, F, & G. PLEASE provide the appropriate EXCEL formulas. I will not be putting pictures of the present and future value tables, so please indicate which PV/FV table at which % and n values. THANK YOU SO MUCH!!!
The Chestnut Street Company plans to issue $825,000, 10-year bonds that pay 7 percent semiannually on March 31st and September 30th. Information relating to this bond is found below: Face Value: $ 825,000 Number of Years: 10 Stated Interest Rate: 7% Number of Payments per Year: 2 Required: Calculate or provide the information requested using a formula or cell reference unless you are instructed to use a specific function: 1) Assume the Market Interest Rate is: 8% a. How many total payments or periods will this bond pay interest? 20 b. When calculating the bond selling price, show the factor from the appropriate future or present value table (found in worksheets included in this workbook) that would be used to calculate the bond interest payments. 13.59033 c. Repeat question b. but now use the VLOOKUP function. For the Lookup_Value argument, your function should reference the result you calculated in question a. Your function should look for an exact match to the value used in the Lookup_value argument. d. Calculate the amount of interest that will be paid on March 31st. $ 28,875 e. Calculate the value of the interest payments that would be used when determining the bond selling price. f. Calculate the selling price of this bond: g. Using the IF function, show the word "Premium" or "Discount" based on the selling price you calculated in letter f
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