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    Calculating yield and years till maturity. Fill in the table for the following zero coupon bonds...

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    Question 1
    Problem 4-14 (please see the attached excel file)
    "Calculating Yield and years till maturity"

    Fill in the table below for the following zero coupon bonds. The face value of each bond is $1,000.

    Use the RATE, NPER, and PV function to solve for the unknowns in the table below.

    Yield to
    Price Maturity Maturity
    $300 30 ?
    $300 ? 8%
    ? 10 10%

    Question 2

    Problem 11-15 (please see the attached excel file)
    "Determine the capital structure of a firm"

    Examine the following book-value balance sheet for University Products, Inc. What is the capital structure of the firm based on market value? The preferred stock currently sells for $15 per share and the common stock for $ per share. There are one million common shares outstanding.

    (all values in millions)

    Assets Liabilities and Net Worth
    Cash and short-term securities $1 Bonds, coupon = 8% paid annually
    Maturity = 10 years, yield to maturity = 9% $10.0
    Account receivable 3 Preferred stock (par value $20 per share) 2.0
    Common stock (par value $.10) 0.1
    Inventories 7 Additional paid in stockholders 10.0
    Plants and equipment 21 Retained earnings 10.0
    ----------- ------------
    $32 $32.0

    Enter formulas to calculate the capital structure in dollars (Please open the attached excel files)

    Capital Structure

    Dollars Percent
    Bonds FORMULA
    Preferred stock FORMULA
    Common stock FORMULA
    Total $

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