Question: I need to put this in an excel spreadsheet - show calculation of the bond valuation at the issue date In a spreadsheet. You are

I need to put this in an excel spreadsheet - show calculation of the bond valuation at the issue date In a spreadsheet.

You are the CEO for Cactus Valley Community Medical Center and you are contemplating a $25 million bond issue to be sold on January 2, 2021.

You would sell the bonds with a 20 year maturity, with annual compounding and a coupon rate of 3%. At issue, the market rate has fallen to 2.5%.

Then, fast forward to December 31, 2021.The local School Board pension fund would like to buy some of your already issued bonds. But, market conditions have changed. Investors now want a 2% return. You already sold the bonds with a coupon rate of 3% interest.What price will they buy your bonds at to give them the market 2% return one year from now?Show your calculation in a separate section on the spreadsheet file.

One last thing.Fast forward to 2026.Interest rates are now 6%.What is the new value of that bond at that point in time five years in the future?

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