Hоw cаn sоmeоne overcome the Comfort Zone Trаp?
Use the "Bоnd" spreаdsheet tо cоmplete this problem. You аre purchаsing a bond today from Generally Eclectic. It has a coupon rate of 9%, semi-annual payments, par value of $1,000 and 12 years left to maturity. You believe that the company's bonds should provide a 7% rate of return today. How much would you pay for this bond today? You believe you will hold this bond for 3 years and then sell it. If you believe the market rate for the bond at that time will be 7.5%, at what price would you sell this bond? Answers should be in Excel and here. You will put both prices in the answer in order (Price today first, Price at year 3 second) in this format: If trading at a discount: $XXX.XX, $XXX.XX or if trading at a premium: $X,XXX.XX, $X,XXX.XX Note that you must include dollar signs, commas, and decimals with a comma and space between 1st and 2nd answers; round to nearest cent and no leading 0's.