Question: Needs to be completed in Excel - Please show formulas/ how they were inputted into Excel 1) Suppose you are looking at a bond that

Needs to be completed in Excel - Please show formulas/ how they were inputted into Excel

1) Suppose you are looking at a bond that has a 10% annual coupon (interest is paid annually) and a par (face) value of $1000. There are 3 years to maturity and the yield to maturity is 9%.

1a. What is the price of this bond

1b. Does the bond sell for a premium or discount? Explain your answer.

2) Consider a bond with five years to maturity that has a 9.25% coupon rate. If the current market interest rate is 10%, how much will the bond price increase if the interest rate falls by 1%?

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