A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years. The bond makes semiannual coupon payments. The bond’s yield to maturity is 9%. In Excel, the =PV formula can be used to find the price of the bond. Fill in the table with the appropriate values:
RATE 

NPER 

PMT 

FV 

TYPE 
Repeat problem , but with annual coupon payments.
RATE 

NPER 

PMT 

FV 

TYPE 
Face value of the bond = 1000
Annual coupon rate = 8%
Annual coupon payment = Annual coupon rate*Face Value = 8%*1000 = 80
Time to maturity =10 years
Yield to maturity = 9%
Semiannual coupon payments
For semiannual coupon payments, we will consider semiannual coupons, semiannual YTM, and semiannual periods to maturity
Semiannual coupon payments = PMT = Annual coupon payments/2 = 80/2 = 40
semiannual YTM = RATE = 9%/2 = 4.5%
No. of semiannual periods = NPER = 10*2 = 20
Face Value = FV = 1000
RATE = 4.5%
NPER = 20
PMT = 40
FV = 1000
TYPE = 0
=PV(4.5%,20,40,1000) = 934.96
Price of the bond with semiannual coupons = $934.96
Annual coupon payments
Yield to maturity = RATE = 9%
Time to maturity = NPER = 10 years
Annual coupon payments = PMT = 80
Face value = FV = 1000
RATE = 9%
NPER = 10
PMT = 80
FV = 1000
TYPE = 0
=PV(9%,10,80,1000) = 935.82
Price of the bond with annual coupons = $935.82
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