Homework Answers
| semi annual cost of bond-1 | Using rate function in MS excel = rate(nper,pmt,pv,fv,type) | nper = 60 pmt = -3600000 pv =45000000 fv =-60000000 type =0 | RATE(60,-3600000,45000000,-60000000,0) | 8.03% |
| Annual rate | 8.03*2 | 16.06 | ||
| semi annual cost of bond-2 | Using rate function in MS excel = rate(nper,pmt,pv,fv,type) | nper = 60 pmt = -3600000 pv =54000000 fv =-60000000 type =0 | RATE(60,-3600000,54000000,-60000000,0) | 6.68% |
| Annual rate | 6.68*2 | 13.36 | ||
| semi annual cost of bond-3 | Using rate function in MS excel = rate(nper,pmt,pv,fv,type) | nper = 60 pmt = -3600000 pv =66000000 fv =-60000000 type =0 | RATE(60,-3600000,66000000,-60000000,0) | 5.43% |
| Annual rate | 5.43*2 | 10.86 | ||
| semi annual cost of bond-4 | Using rate function in MS excel = rate(nper,pmt,pv,fv,type) | nper = 60 pmt = -3600000 pv =75000000 fv =-60000000 type =0 | RATE(60,-3600000,75000000,-60000000,0) | 4.74% |
| Annual rate | 4.74*2 | 9.48 |
 |
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