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****PLEASE SHOW IN EXCEL*** 1. Boeing Corporation issues a 3 percent coupon bond with 13 years...

****PLEASE SHOW IN EXCEL***

1. Boeing Corporation issues a 3 percent coupon bond with 13 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 7 percent, find the bond's price.
A. $388.49
B. $582.73
C. $529.75
D. $662.19
E. none of the answers is correct
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Answer #1

par value of bond 1000

Coupon rate 3.00%

Semi-annual coupon rate = 1.50%

Coupon amount = 1000*3%/2= 15.00

years to maturity= 13

no. of periods = 13*2= 26

YtM rate = 7%

Semi-annual YtM = 3.50%

Price of bond = $662.19

So price of bond is $662.19

Excel function = -PV(3.5%,26,15,1000)

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