Question

Answer the following questions in an Excel file. Each questions with multiple parts requires a separate answer. Label your steps and show each answer (1, 2, 3, and 4) in a separate Excel tab. For problems that require a written answer, use a text box in Excel to record the text.

1. Calculate the PV of $5,000 received 10 years from now compounded annually at discount rates of:
   1. 1%
   2. 4%
   3. 12%
2. Calculate the FV of $5,000 invested for 20 years using annual interest rates of
   1. 3%
   2. 7%
   3. 10%
3. Prepare a bond amortization table using the following information. Using this information, calculate the duration of this bond.
   1. Principal: $1,000,000
   2. Face rate: 8%
   3. Yield: 7%
   4. Semiannual payments made over 5 years
4. For the following questions, use information from your company’s financial statements
   1. How much total long-term debt does your company report?
   2. What is the maturity of the longest-term debt your company has?
   3. Is the debt reported at face value on the balance sheet?
   4. Calculate the present value of the longest term debt on your financials considering:
      1. A discount rate of 4%
      2. Annual payments made on the debt
      3. Term debt (rather than serial)
      4. A maturity date equal to the reported maturity date on the financials.

Answer 1

As per rules I am answering the first 4 subparts of the question

Sub part	Calculate the PV of $5,000 received 10 years from now compounded annually at discount rates of:
1	a. 1%	$4,526.43
2	b. 4%	$3,377.82
3	c. 12%	$1,609.87
	Calculate the FV of $5,000 invested for 20 years using annual interest rates of
4	a. 3%	$9,030.56