Question: Year Year Year Year 7 8 9 10 3 Assignment: 4 Develop a Bond Pricing Model for three different options: Base Case, Scenario 1 and

 Year Year Year Year 7 8 9 10 3 Assignment: 4

Year Year Year Year 7 8 9 10 3 Assignment: 4 Develop a Bond Pricing Model for three different options: Base Case, Scenario 1 and Scenario 2 5 The base case has the key input areas highlighted: A yellow highlight indicates a numeric input, a light blue is a formula input 6 The green cells contain formulas, no need to do anything with these cells 7 8 9 Base Case 10 $5,000 Bond (Par value), 6% Coupon Interest Rate, 10 yrs 11 Year Year Year Year Year Year 12 Term (years) 1 2 3 4 5 6 13 Interest Rate 14 Bond Face Value 15 Bond Payment (coupon) 16 Final Payment 17 PV of Coupons PV 18 Sum of Coupon PV 19 PV of Final Payment 20 PV (Price) of Bond $ 21 22 5,000.00 PV of Final Payment

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