Hello,

Please help me solve this using excel. Thank you.

1. Calculate the value of a fixed rate bond with fifteen years left to maturity, annual

coupon payments at a coupon rate of 5.0%, face value of $1,000, and yield-to-maturity

of 3.5%. hint: See solution for similar problem in lecture presentation on Bonds.

Should the calculated value be greater than or less than $1,000?

2. Calculate the value of a fixed rate bond with fifteen years left to maturity, annual

coupon payments at a coupon rate of 3.5%, face value of $1,000, and yield-to-maturity

of 5%. hint: See solution for similar problem in lecture presentation on Bonds. Should

the calculated value be greater than or less than $1,000?

3. Calculate the value of a fixed rate bond with fifteen years left to maturity, semi-annual

coupon payments at a coupon rate of 5.0%, face value of $1,000, and yield-to-maturity

of 3.5%. hint: See solution for similar problem in lecture presentation on Bonds.

Should the calculated value be greater than or less than $1,000?

4. What is the yield-to-maturity of a corporate bond that has face value of $1,000, annual

coupon payments of $35, is being quoted at 102.5, and has seven years left to maturity?

hint: You need to use the Excel RATE function.