ADM 537 Workshop Four 4.3 Dropbox Bonds and the Marketplace

ADM 537 Workshop Four 4.3
Dropbox Bonds and the
Marketplace
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workshop-four-4-3-dropbox-bonds-andthe-marketplace/
ADM 537 Workshop Four 4.3 Dropbox Bonds and the Marketplace
Background Information
In this assignment, you will complete problems using Excel and the concepts of bond valuation, interest rate
risk and yield (yield to maturity vs. current maturity). Using these tools is important in assessing the value of an
investment as well as understanding how much money an organization will truly raise with the issuance of
bonds.
Instructions
1. In your textbook, Fundamentals of Corporate Finance, review:
a. Chapter 7, “Interest Rates and Bond Valuation”
2. Review the Chapter 7 – Interest Rates and Bond Valuation.pptx PowerPoint file.
3. Using Excel, complete the following problems in your textbook:
a. Bond Valuation: Problem 3 on page 229, and Problems 26 and 28 on page 231
b. Interest Rate Risk: Problems 8, 10, and 12 on page 229, and Problem 17 on page 230
c. Yield to Maturity & Current Yield: Problem 1, on page 229, and Problems 14 and 18 on page 230
4. When you have completed your assignment, save a copy for yourself and submit a copy to your instructor
using the Dropbox.
5. This assignment is due by the end of the workshop.