FINA 4920 Computers in Finance Assignment 3 Bonds Due date: Thursday, February 18, 2010 (before class) Submit it via email to FINA4920spring2010@gmail.com Directions – Either use the template provided (feel free to modify it in any way you deem necessary) or create your own Excel spreadsheet, which should contain all of your work and all of your answers on one single initial worksheet. Copy and paste your answers from your work into the correct slots in the answer sheet, which should be the first tab in your excel file. Include AT LEAST TWO digits after the decimal for every single question , and don’t forget to type your name into the Student Name slot in the answer sheet. Failure to follow directions will result in points deductions. Bond Valuation and Yield Calculation 1. Eleanor is considering investing in a zero-coupon bond. Specifically, the bond has 6 years to maturity, a face value of $1,000, and a quoted yield of 7%. What should she pay for the bond? 2.
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