Question: B C D E F H A 1 Years left to maturity Nper 2 Annual interest payment Pmt your valunnow then 3 Present value PV
B C D E F H A 1 Years left to maturity Nper 2 Annual interest payment Pmt your valunnow then 3 Present value PV enter in the Coll 4 Future value FV 5 6 Expected rate of return Rate 7 8 9 Using the yellow cells in the spreadsheet above to compute the bond valuation. 10 Question #3 11 Assume you owe a bond with a market value of $820 that matures in 7 years. The par value of the 12 bond is $1000. Interest payments of $30 are paid semiannually. What is your expected rate of return on the bond? 13 14 15 Question #4 16. Current Yield = annual interest / current price 17 Assume yuu have a bond with a semiannual interest payment of $35, a par value of $1000, and a 18 current market of $780. What is the current yield of the bond? 19 20 21
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