Part of these problems involves problem solving, part of it some research along with interpretation of that research. Time value computations must be done using appropriate time value functions in Excel. Note that you need to do bond valuation analyses to answer #s 1 and 2 below. PLEASE DO IT IN EXCEL FORMAT SO I KNOW WHAT I AM DOING AND SEE THE FORMULAS

Part 1: 1. A bond was recently quoted at 98. Its face is $1,000 and its coupon is 5%. It matures in 15 years. a. Should you buy the bond if your discount rate is 6%? Why/why not? b. If your discount rate is 4%, should you buy the above bond? Explain. C. Suppose the quote for the bond was 101 rather than 98 and your discount rate is 4%. Should you buy the bond? Explain. 2. You own a bond that is currently quoted at 97, has a face of $1,000, a coupon of 6% and matures in 10 years. You are considering selling the bond. a. Should you sell it if your discount rate is 7%? Explain. b. Suppose the bond is quoted at 89. Should you sell it? Explain. What is the lowest price for which you would sell the bond? Explain. C