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Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. The bonds have a yield to maturity of 10%. What is the current market price of these bonds? $938.55 PV of Par Value Figure 5.1 Finding the value of Micro Drive Inc's Bond (V) INPUTS: Years to maturity=N= 10 Coupon payment=INT = $90 Par value - M $1,000 Required return = r = 10% 1. Step-by-Step: Divide each cash flow by (1 + r)* PV of Coupon Coupon Year Payment Payment Par Value 1 $90 $81.82 2 $90 $74.38 3 $90 $67.62 4 $90 $61.47 5 $90 $55.88 6 $90 $50.80 7 $90 $46.18 8 $90 $41.99 9 $90 $38.17 10 $90 $34.70 11 $90 $31.54 12 $90 $28.68 13 $90 $26.07 14 $90 $23.70 15 $90 $21.55 $1,000 Total = $684.55 $239.39 V = PV of all coupon payments + PV of par value = $923.94 Inputs: 2. Financial Calculator: Output: 10 N 0 1/YR 90 PMT 1000 FV PV -$1,000.00 3. Excet PV function: Fixed Inputs: Cell references: PVN PVx PV, =PV(Rate,per, Pmt. Pv.Type) =PV(10%,15,100,1000) =PV(C24,C21,C22,C23) -$1,000.00 -$938.55 Bond Value = [Present Value of the coupons + Present value of the Face amount] Annual Coupon Payment of the bond (C)= $1,000 * 9% Bond Value = [$90* PVIFA (10%, 10) + $1,000* PVF (10%, 10)] - please explain the the red on how to calculate. Price of bond is $938.55 why it is negative in excel

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