1. Develop an Excel spreadsheet similar to the one shown on page 137 to calculate the following: Suppose we have a bond with 20 years to maturity, a coupon rate of 7 percent, and a yield to maturity of 10 percent. If the bond makes semiannual payments, what is its price today? Save the spreadsheet and attach it through Connect to submit it.
2. Develop a loan amortization table using an Excel spreadsheet similar to the one shown on page 114 (this is going back into chapter 4) to calculate the following: Suppose you have a 7-year, $10,000, 8 percent loan with constant payments. First, find the amount of the payment using the PMT financial formula in Excel and then set up the amortization table. Do not just enter numbers in the amortization table. Please use the formulas.