Working from the top down, enter data needed from the text question. Calculate a solution for each cell back-lighted in yellow. Build your formulas in calculation cells by referencing cells above that in turn reference numbers directly from the text problem.

fx =F6*F7 B H M N 1 2 b Understanding the market price of bonds How muchs should you pay for a bond with a 2.7% coupon with annual coupon payments if the term to maturity is 4 years and the current market rate of interest is 3.2% for a comparably risky asset? 3 4 5 6 7 $1,000 2.7% $27 3.2% 8 Par value= Coupon rate= Coupon= Market rate of interest Term to maturity- Current market price! 9 10 4 11 12 13