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    What is fair value of bond using Excel to calculate.

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    A $1,000 face value bond has a remaining maturity of 10 years and a
    required return of 9%. The bond's coupon rate is 7.4%. What is the fair value of this bond?

    Using a financial calculator:

    Number of years (N) = 10, future value (FV) = 1000, interest rate (I/YR) = 9

    To calculate the annual payment: 0.074 * 1000 = 74 = PMT (in calculator terminology)

    After pressing CPT to compute the price of the bond, then press PV.

    Therefore, the fair value of the bond is $897.32.

    Please prepare response in Excel.

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