Question 1). CR Inc. has 7% coupon bonds with 10 years to maturity. The bond requires annual coupon payments. The face value is $1,000.
Calculate the current price of the bond if the yield to maturity is 9%. (work this problem using Excel spread sheet also)
Question 2). Neuralware Company has issued 12% coupon bonds with $1,000 face value. The bond pays semi-annual coupon payments. It has 5 years to maturity. If the bonds are selling for $1,100, calculate the yield to maturity of the bonds.
Please show all calculations by hand as well as show how they could be calculated using excel.