Question: Using Excel formulas you can find future values of present values for different securities. Answer the questions below by using a mathematical formula (write down
Using Excel formulas you can find future values of present values for different securities. Answer the questions below by using a mathematical formula (write down the formula in the Excel file and plug in the values) and also by using the Excel function wizard.
1)Find the PV of $1,000 due in 5 years if the discount rate is 10%. (Note: In the wizard's menu, use zero for PMT, and set the FV with a negative sign so that the PV will appear as a positive number).
2)How will your answer change if it was compounded semiannually? Show the calculations.
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