Question: Please answer both annual compound and semi annual compounding Solve the following problems and answer the last question. Example problems can be found on the

Please answer both annual compound and semi annual compounding

Solve the following problems and answer the last question. Example problems can be found on the "Bond Valuation Example" tab below. Create appropriate formulas using the supplied values in the corresponding cells so Excel can calculate the answer. 4 1. Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). Par value is $1000. [Annual Compounding Answer] (Semi-annual Compounding Answer] 5 6

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