Question: PLEASE USE EXCEL: You are considering purchasing a $1000 bond which matures on July 14, 2022. The bond pays semiannual coupons of j2 = 5%.
PLEASE USE EXCEL:
You are considering purchasing a $1000 bond which matures on July 14, 2022. The bond pays semiannual coupons of j2 = 5%. Assuming you require a yield rate of j2 = 4%,
(a) Calculate the values of P, I, and Q every 10 days, starting on January 14, 2021 and going until July 14, 2022. (Make sure you calculate the values on July 14/21, January 14/22 and July 14/22 in addition to the values every 10 days).
(b) Graph the values of P and Q from (a) using a line graph.
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