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MBA8025 Financial Statement Analyses Homework #4: EXCEL ASSIGNMENT

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Question;MBA8025;Financial Statement Analyses;Homework #4;EXCEL ASSIGNMENT;Due at Monday;December 8;The Company issued Corporate Bonds;on December 31, 2014, with face value $200,000;due in 12 years, a stated interest rate of 10% and an effective yield of 8.25%.;Problem;1;What should be the market value of the Bond at the date of issuance?;NOTE;Enter the data above in four;cells, and use the appropriate Excel financial function in your software to;compute present value, rather than formulas from present value tables. The PV;cell(s) should reference only data cells, not show actual amounts. Then,the;spreadsheetcan;be easily modified for different face values, maturities, stated (coupon);interest rates, and/or effective interest rates.;Problem;2:Prepare;an amortization schedule for the premium/discount on the above bond;using the following columns;Date;Beginning;Cash paid;Interest;Premium;Ending;Balance;Expense;Amortized;Balance;12/31/2014;Year 2015;2016;?.;2026;Final table will;look similar to our classroom example, Page 19 of Slide11.pptx.;Problem;3:Managers of the company want to know how;sensitive the market price ofthe bond would be if the stated and market;interest rates are different from the above. For the above bond, identify how;the present value changes if the stated and effective market rate changes by;completing the following table.;PV of Bonds;Stated Rate of;Interest;6%;7%;8%;9%;10%;11%;12%;Effective 6%;Interest 7%;Rate 8%;9%;10%;11%;12%;NOTE: Once the Excel formulae in Problem;1 are efficiently setup, this table can be filled quite easily by clicking Data;?;What-If Analysis?;Data Table tabs of the Excel spreadsheet. When the present value becomes;same as the face value of the bond?;Output;to be submitted: Upload your Excel file in the;Dropbox of the Desire2Learn bymidnight of Monday, December 8.;Important;You;may work in groups to help one another if difficulties are encountered.;However, the final output must be solely the result of your individual efforts;not a group endeavor.;Copying;another student?s work and/or virtually identical cell contents will receive no;credit.;MEMO: Useful information before;you start, if you do not have a good experience.;For your information, Microsoft Office is available free to all;students with GSU Panther e-mail address. To find, go to the following site;http://technology.gsu.edu/technology-services/it-services/software-computer-purchase/software-download-and-purchase/;Microsoft Excel is;the most widely used spreadsheet software and it is very easy to get started. A;small of number of very simple Excel financial functions will be used in this;homework. Excel is extremely powerful in financial functions as well as in;other functions. Since Excel includes so many useful functions, it might be;useful to know how to get help before a beginner starts any project.;(1) From Excel: The Help button;in Excel is too small and can easily be ignored. Actually the Help button;stays in the top;right corner of the window. The button looks like a question mark surrounded by a circle. Or you can use the;shortcut key of F1 to enable the Help window.;(2);Internet searching: Many times;searching internet is an easier way to get help. You would be able tofind;more beginner-friendly explanations with numerous examples, but without using;highly technical terminologies.;(3);Lynda.com: All GSU students have a free access to;Lynda.com which is an online learning company that helps anyone learn software;design, and business skills to achieve their personal and professional goals.;To get some instructions on Excel, go to;the school?s homepage at http://www.gsu.edu;and click on;?Student?? ?Technology.?;Then, click on ?Lynda.com Online Training? in the middle-left;side of the;page. After logging;in using your GSU student ID and password, click on ?Software?? ?Excel?;and ?2013?;on the left. You;would find several video lectures and each one is quite lengthy. However, you;can partially watch topics that you are interested in.;(4) Reference book;It is strongly recommended to purchase a reference book. Most;books cover same materials, but it is better to review the way of presentation;in the book by yourself, and choose your favorite one.

 

Paper#38157 | Written in 18-Jul-2015

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