00:01
So for this particular problem, doing it in excel, you can put all these labels, the par value.
00:08
Let me get a different color pen here.
00:10
The par value for a1, the coupon rate, the years to maturity, the years to yield to maturity, the number of periods, the coupon payment, the discount per period, period and then the current price which is what you end up wanting and then in b1 we'll have that par value of a thousand, the coupon rate is .06 or 6%, years to maturity is the 14, the .08 is the yield to maturity and then we have formulas to do to do the rest of the calculation and so the number of periods naturally is going to end up being that 14 times 2 since we're having it semi -annual and then the coupon payment will be the 1000 which is the b1 times this divided by 2 since since it's semiannual.
01:07
B7 will end up being the discount per period.
01:15
We have the 0 .08 divided by 2, again, since it's semiannual.
01:22
And then the current price will be the last thing that we'll be calculating.
01:27
So i think we've gotten up to here...