How much should we pay for a $5-$year Treasury bond if we purchase it directly at the US treasury site at $4\mathrm{.}38\%$ today? Assume that coupon payments are paid semi$-$annually and we receive the face value of the bond of $$1000$ at maturity.

$=$PV$(4\mathrm{.}38\%/2,10,43\mathrm{.}8/2,1000,0)$

If interest rates rise to $5\mathrm{.}5\%,$ what is the current value of the same bond now?

$=$PV$(5\mathrm{.}5\%/2,10,43\mathrm{.}8/2,1000,0)$

Is this bond now trading at a premium, discount, or par value?

If I invest $$100$ in a security that pays no dividends but pays $5\%$ interest annually, how much will this be worth in $5$ years?

$=$FV$(5\%,5,0,-100,)$

If I invest in the same security but it compounds monthly, how much will this be worth in $5$ years?

$=$FV$(5\%/12,60,,-100,)$

If I invest in the same security but it compounds continuously, how much will this be worth in $5$ years?

$=100*$EXP$(5\%*5)$

If I know that the security matures at a value of $$128\mathrm{.}40,$ then how do we solve for its present value?

$($Hint: Reverse the sign of the interest rate$)$

$=128\mathrm{.}4*$EXP$(-5\%*5)$

If I have a series of irregular cash flows, which formula should I use?

What is the value the following set of irregular cash flows if I determine my opportunity cost to be $10\%?$

$300,-100,125,375,532,-123,423)$

$=$NPV$(10\%,$SUM$($C$22$:I$22))$

What if my opportunity cost is $15\%?$

$=$NPV$(15\%,$SUM$($C$22$:I$22))$