What is the current value of a zero-coupon bond

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Reference no: EM13899384

I would like to have the solution to the following sample problems in EXCEL format, so that I can see the formulas used. Thanks.

1. What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 9 years if the appropriate discount rate is 7%.

Please round your answer to the nearest cent.

2. What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 5 years if the current price is $430.

Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

3. What is the current value of a $1,000 bond with a 8% annual coupon rate (paid annually) that matures in 9 years if the appropriate discount rate is 5%.

Please round your answer to the nearest cent.

4. What is the current value of a $1,000 bond with a 5% annual coupon rate (paid semi-annually) that matures in 6 years if the appropriate stated annual discount rate is 8%.

Please round your answer to the nearest cent.

Reference no: EM13899384

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