Please show how this is solved in excel, thank you so much!!! Paste iti Merge &

Question

Please show how this is solved in excel, thank you so much!!!

Paste iti Merge & Center ? ? % .00 -.0 Conditi A1 x fic 8.07 Zero Coupon Bonds You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to m 8.07 Zero Coupon Bonds You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this 1 bond is 4.9 percent, what is the dollar price of the bond? Assume semiannual compounding periods. 3 Face Value Maturity Coupon Rate Compounding Frequency 6 YTM Bond Price 12 13

Explanation / Answer

Face Value = 10,000

YTM = 4.9%/2

Maturity = 17*2

Coupon rate = 0

compounding frequency = 2

Price

=-PV(4.9%/2,34,0,10000,0) (paste in Excel)

= 4,391.30

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