Question: please use excel You are interested in purchasing two bonds. Bond A: 15 -year $1,000,000 bond, redeemable at 102.5, and paying semi-annual coupons at i(2)=4%.

 please use excel You are interested in purchasing two bonds. Bond

please use excel

You are interested in purchasing two bonds. Bond A: 15 -year $1,000,000 bond, redeemable at 102.5, and paying semi-annual coupons at i(2)=4%. It is bought to yield i(2)=5%. Bond B: 15-year, $1,000,000 bond, redeemable at 102.5 and paying semi-annual coupons at i(2)=6.5%, bought to yield i(2)=5%. Set up a bond amortization/accumulation schedule for each bond. Graph the values in the book value column for each bond (on the same graph). (9 marks)

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