Question

TVM

For each problem use the appropriate Excel formula to calculate a value, rate, or time frame. Then build the cash growth/discount model or amortization table to prove that the number is right.

1. Use the =PV formula: What would you pay for a bond that pays a 5.82% coupon rate (annual) twice per year if the face value is $10,000, maturity of 15 years, and the market rate for the bond is 5.5%?
2. Use the =FV formula: You are investing $180,000 at 3.32% for 7 years, what will you have at the end?
3. Use the =FV formula: Same as #2 but pay in an additional $25,000 each year too.
4. Use the =PV formula: Show what $30,000 paid to you 6 years from now is worth in present value at inflation of 2.8%.

Answer 1

Screenshot with formulas

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