Question: Bond Pricing with Present Value Formula Consider the following three bonds. 1. Describe all cash flows (in future values) these three bonds will pay in

Bond Pricing with Present Value Formula Consider the following three bonds.

Bond Pricing with Present Value Formula Consider the following three bonds. 1. Describe all cash flows (in future values) these three bonds will pay in Year 1 to Year 3 in the table. 2. Compute the present value for all cash flows (individually) for the three bonds. 3. Compute the bond price for all three bonds as a sum of the present value of all cash flows. 4. Use the Excel function PRICE to calculate the price of each bond and compare with prices from Step 3. Compare the prices from Questions 3. and 4

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