CO n Edit Links Reapply Filter All- Sort Get & Transform Data Advanced Queries &...

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CO n Edit Links Reapply Filter All- Sort Get & Transform Data Advanced Queries & Connections G24 Sort & Filter A B B Problem 1 E F G H 4 A bond promises to pay you $1,000 starting 6 years from now, and then to increase this payment by 4% per year forever. 6 7 8% 4% 10 11 Fill in the cash flows up to year 9 12 Year CF 13 S0.00 14 2 S0.00 15 $0.00 16 S0.00 17 $0.00 18 6 $1,000.00 $1,040.00 $1,081.60 $1,124.86 19 7 constant growth forever 20 21 etc, etc 22 23 $9.00 The terminal value is 24 (t-1)/(r-g) the terminal value is true at timet 25 26 (use the NPV function) The value of this bond today is: 27 28 Stock Home

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