You purchased a $1,000 five percent coupon bond that matures in 10years. How muc

Question

You purchased a $1,000 five percent coupon bond that matures in 10years.
How much would your bond be worth if interest rates fall to 4% theday after you purchase the bond? What would the bond be worth inone year if interest rates fell to 4% at that point?

I already know the answers to this problem however im not sure how to input the data onto this worksheet.


Fill in the BLUE columns with the relavent data from the problem. Calculate the price of the bond in Red.

Future Value (FV) Number of Years (N) Payment (PMT) Rate (I/Y) Present Value (PV)
Part 1


Future Value (FV) Number of Years (N) Payment (PMT) Rate (I/Y) Present Value (PV)
Part 2

Explanation / Answer

http://www.justanswer.com/uploads/BusinessTutor/2008-11-06_164250_Bonds_4.xls

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