"BOND, BOOK VALUE, INVESTMENT SCHEDULE. A BOND is a written contract to pay a fixed sum called the REDEMPTION VALUE on afuture specified date called the REDEMPTION DATE. FACEVALU is bond's face value.FACRATE% is its nominal or face interest rate. INVRATE% is the investor's desired interest rate. NUMYEARS is the term of the bond in years from purchase date. PAYMNINT is the payment interval in months (=1 for month, =3 for quarter, =6 for semiannully, =12 for annually). REDMVALU is bond's redemption value in dollars (not as percent of face value.) PERPAYMN is the periodic interest payment. PURPRICE is the purchase price. PERIOD # BOOK VALUE INTEREST DUE BOND INT CHANGE BV (at start) on BV (at end) (at end) (at end) 1 $981.85 $39.27 $35 $ +4.27 2 986.12 39.45 35 +4.45 3 990.57 39.62 35 +4.62 4 995.19 39.81 35 +4.81 *** Answers to problems. *** Note: JJ is semiannually. (a) Set FACEVALU=1,000, FACRATE%=7, INVRATE%=8, NUMYEARS=2, PAYMNINT=6, REDMVALU=1,000. Set PERIOD# =1, 2, 3 and then 4. Table is shown above. ||(a) Construct an investment schedule for a $1,000, 7%, JJ bond redeemable at par in 2 yrs which is bought to yield 8% compounded semiannually. Type , to see answers. Type (F2) to return to helpfile. ''(c) Copyright PCSCC, Inc., 1993"
