Calculate the issuance price of a 10 year bond

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Reference no: EM132322322

Question

Solve all of the iollowing problems with Excel. Please use iorrnulas in excel to solve.

(a) Assume monthly car payments of $500 per month for 4 years and an interest rate of 0.75% per month.

1. What initial principal will this repay?

(b) Assume annual car payments of $6000 for 4 years and an interest rate of 9% per year.

1. What initial principal will this repay?

(c) Assume monthly car payments of $500 per month for 4 years and an interest rate of 7% per year.

What initial principal will this repay?

loan payment schedule showing the payments and interest for the life of the loan.

(3) (a) A 10-year mortgage for $95,000 is issued at a 6% annual interest rate.

(a) What is the monthly payment?

(b) How long does it take to pay off the mortgage, if $1500 per month is paid?

(c) What is the monthly payment, if the interest rate is 0.5% per month?

(4)  Calculate the Issuance Price of a 10 year bond with a face value of $250,000, stated interest rate of 4% to yield 5%. Interest payments are paid semiannually.

1 Calculate the price in excel

2 bond amortization schedule using the straight line method

3 bond amortization schedule using the effective interest method

Please note: For all of the above please label your work. Work will be graded on accuracy and the utilization of excel throughout your work.

Reference no: EM132322322

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