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A $1,000, 9.50% semiannual bond is purchased for $1,010. If the bond is sold at

ID: 1123477 • Letter: A

Question

A $1,000, 9.50% semiannual bond is purchased for $1,010. If the bond is sold at the end of three years and six interest payments, what should the selling price be to yield a 10% return on the investment?

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i need the answer in excel (using excel functions)if it can

also if you can send the excel answer to my email to see the details for solving the problem

1411@outlook.sa

Explanation / Answer

use the excel function

PV=PV(rate,nper,pmt,fv)

=PV(10%/2,6,1000*9.5%/2,1000)

=987.31

the above is the answer using excel

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