EXCEL The FAMA Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1000 face value at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1-year. What will be the value of each of these bonds when the going rate of interest (yield to maturity) is: A) 8%
B) 12%
Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1-year)?

A)

8%

Bond L = $1,171.19

Bond S = $1,018.52

12%

Bond L = $863.78

Bond S = $982.14

Explanation:

Price can be calculate by using PV function in excel as follow

=PV(rate, nper, pmt, [fv])

Where

Rate = yield to maturity

nper = numbers of years to maturity

pmt = coupon payment

fv = maturity value

The prices are calculated using the PV function and working is attached with this answer

A Formula sheet is also attached for your reference.

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

i have economics during second block which is easy to me. anyways, i think b.