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.

Solution Summary

A few problems related to zero coupon, discount rate, interest, current value, face value calculations are solved here in an Excel file.

Bonds can be issued at face value, at a discount or at a premium. What factor explains why bonds are issued at a discount?
A. The issuing firm is anxious to sell them.
B. The yield rate is less than the coupon rate.
C. The yield rate is greater than the coupon rate.
D. The bonds are considered less risky than similar b

BioMax Inc. offers an 8 percent coupon bond that has a $1,000 par value, semiannual coupon payments and 20 years of its original 25 years left to maturity. Which of the following statements is true if the market return on similar bonds is 10%?
a. The bond will sell at a premium of $1,198 because the coupon rate is greater th

Consider the two bonds described below:
Bond A Bond B
Maturity Years 15 20
Coupon Rate 10 6
(Paid Semiannually)
Par Value 1,000 1,000
a. If both bonds had a required return of 8%, what would the bonds prices be? Show wor

Bond Price
a) Assume that UPC is issuing a 10-year, $10,000 par value bond with a 6% annual coupon if its required rate of return is 6%? What is the value of this bond?
N 10 Years to Maturity
CPN % 6% Coupon Rate
YTM 6% Yield-To-Maturity
Par Value $10,000

1. Given the following cash flows, what is the present value if the discountrate is 8%?
Yr1 $200, Yr2 $350, Yr3 $800, Yr4 $1,125
a.$1,115.07
b.$1,947.23
c.$2,165.70
d.$2,358.96
e.$2,922.62
6. A bond with an annual coupon of $100 originally sold at par for $1,000. The current market interest rate on this bond i

a. What is a discount bond? What will happen to the price of a discount bond as it
approaches maturity?
1- Given TWO (2) identical bonds with the same coupon rate but different maturity dates,
the bond with a longer maturity date is said to be more risky than the bond with a shorter
maturity date. Why?
2- A bond is call

1. Find the value of a bond with the following characteristics: (a) face value of $1,000, (b) 8% coupon rate, (c) the bond matures in 14 years, (d) the market rate of interest is 6%.
2. Is the bond priced in question 1 selling at a discount or premium to its par value?
3. Using the information from question 1: the market r

You are considering buying a U.S. government bond with the face value of $1000. The bond pays an annual coupon payment of $80 and it matures in 5 years. The bonds coupon rate is 8%. What are the cash flows associated with owning this bond for each year?

A) Marigold Merchants has an outstanding issue of $1,000 par value bonds with an 8% coupon interest rate. The issue pays interest annuallly and has 15 years remaining to its maturity date. Bonds of similar risk are currently yielding a 10% rate of return. What is the value of these Marigold Merhant bonds?
Is the bond selli