Suppose your corporation want to rise 1'500,000 for 12 years and will issue annual bonds with a face value of 1,000 each one. You know that the market will ask a yield of 11%. The market price of each bond is 750.
Calculate how much money you will at the end of each year to pay the emission's coupons.
Calculate the price of a bond issued on 2/14/2017, with maturity on 2/14/2027, with a coupon rate of 4.8% paid semiannually, 5% yield. Use the Excel Price function with basis=0. Assume face value of $1000.
Hint: Remember that price is calculated assuming per $100 face value. Be careful with how to set the settlement (better read again Excel help).