Please see the attached files. Could you please use formula or add comments so that I understand it for the future? I also attached copies from my book regarding this problem.
Below is you tutorial.
Please note that rather than accomplishing the Excel sheet you provided, I presented the step by step solution here.
Topic 5 Individual Issue Value
From the disclosure under Market Information, we know that the current rate of the note issue is 6.875% (7 year term), hence we will use this information in computing the present values of both the principal and the interest payments of the note.
Please note that since no additional information was provided, I assumed that the note pays interest once a year.
PV of principal (face) amount = Principal x [1/(1+Market rate)^year] = $30 million x [1/(1+6.875%)^7] = $18,835,986.07
Interest payment = $30,000,000 x 4. 25% = $1,275,000.00
PV of interest payments ...
The expert examines bond valuation and worksheets for a company. Excel is used.