Question: Show all work. Use an excel spreadsheet to prepare this assignment. Show what excel equations you used. Problem 3 A company issues bonds with a

Show all work. Use an excel spreadsheet to prepare this assignment. Show what excel equations you used.

Problem 3

A company issues bonds with a coupon rate of 8%, due in 10 years. The total bonds issued equals $1,000,000. On the day of issuance, other bonds are selling at 7%. Interest is paid annually.

  1. Will these bonds need to be issued at par, premium or discount?
  2. What is the price for the package?
  3. If bonds are issued for $1,000 each, what is the price of an individual bond?

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