A. Assuming you purchased a $50 face value bond, what is the exact rate of return you would earn if you held the
bond for 20 years until it doubled in value? B. If you purchased a $50 face value bond in early 2014 at the then current interest rate of .10 percent per year how much would The bond be worth in 2024. ( I know I did this wrong because I only got $50.50 Which is a terrible investment if that is the right answer). C. In 2024, instead of cashing it in you hold the bond until it doubles in value in 2034 what is rate of return over 10 years.
I really need help learning how to set these problems up in an Excel spread sheet and choosing the correct formula. I have no financial background.
a)The rate of return is calculated as follows- Future Value PV(1+r)^n Where, PV = Present Value or $50... View the full answer