1 ) Solve the following quesitons in an Excels spreadsheet, and create a cash-flow table for each Bond A and Bond B over 6 years. a) Calculate the yield rates for two bonds described below. b)...


1 ) Solve the following quesitons in an Excels spreadsheet, and create a cash-flow table for each Bond A and Bond B over 6 years.


a) Calculate the yield rates for two bonds described below.


b) Correctly use Rate of Return (ROR) analysis to determine which, if either, bond an investor with a MARR of 10%, should purchase.


c) Confirm your answer to part (b) using
Present Worth Analysis. Type out formulas used and calculations performed.


d) Confirm your answer to part (b) using
Annual Worth Analysis. Type out formulas used and calculations performed.



Bond<br>A<br>$8,000<br>$9,000<br>8% Annually<br>Purchase Price<br>Coupon Rate<br>6% Annually<br>Face Value<br>$10,000<br>$10,000<br>Matures in<br>6 years<br>б уears<br>

Extracted text: Bond A $8,000 $9,000 8% Annually Purchase Price Coupon Rate 6% Annually Face Value $10,000 $10,000 Matures in 6 years б уears

Jun 10, 2022
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