Please help me solve this question using Time value computations using appropriate time value functions in Excel. I have tried solving this usint Rate however, I get error everytime I plug in the values.
1. A bond was recently quoted at 98. Its face is $1,000 and its coupon is 5%. It matures in 15 years.
a. Should you buy the bond if your wish to earn 6% on your money? Why/why not?
b. If you wish to earn 4% on your money, should you buy the above bond? Explain.
c. In part b, suppose the quote for the bond was 101 rather than 98. Should you buy the bond? Explain.