Finance bond question?

March 11, 2010 by: nickadmin

So I am working on this problem and a bit confused. I don’t have a financil calculator — trying to use excel
So:
There are 3 bonds
the required rates of return are 7%, 7.5%, 10%
The coupon interest rates are 6.375%, 7.875%, 7.2% respectivly.
The Years to maturity are 27, 12, 11.
They are 1000 par value bonds.
I need to know the values of the bonds
Even if you could tell me what they are so I can check my excel answers
I wish my book would tell me that. But it doesn’t. The information I already posted is all I have to work with.

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Comments

One Response to “Finance bond question?”
  1. Michael R says:
    March 11, 2010 at 12:34 pm

    You say that these are coupon bonds. Are the coupons attached? This would be so much easier if they were not. lol

    How often is the coupon interest paid?

    With the above information, this can be done on a financial calculator like the one included with my Treo. You might like to go on line. There are plenty of good sites which will give you the ability to enter the information in and get the results.

    I hope this helps.