Question

In: Economics

the yield to maturity of a 20-year 8% coupon bond with a $1,000 face value that sells for $1,200. (Excel function: rate)

Use Excel to calculate (Please type the complete function command with all parameter inputs; round up your answers to 2 decimal places):

    1. the yield to maturity of a 20-year 8% coupon bond with a $1,000 face value that sells for $1,200. (Excel function: rate)
    2. the yield to maturity of a 5-year discount bond with $1,000 face value that sells for $950. (Excel function: rate)
    3. the installment payment of a 4-year fixed payment loan of $25,000 with 4% interest rate. (Excel function: pmt)
    4. the present value of a lottery winning that pays $20,000 annually for 30 years with discounting rate of 5% (Note: the first payment is received today.) (Excel function: pv)

e. the unpaid balance of a 3% (per month) fixed-payment car loan of $15,000 with monthly payment of $800 paid for one year. (Excel function: fv)

 

Solutions

Expert Solution

Refer the attached screenshot of excelsheet

B. Refer the screenshot of excel

C. Refer the formula in the formula bar

D. Refer the attached picture

E. Refer the attached picture

Refer the formula in the formula bar.


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