In this report, we will put into the use the bond valuation technique so learnt by us. In addition, for the purpose of valuation, we will use the excel spreadsheet as and when needed. In other part, we will discuss and compare the interest rate risk and re-investment risk followed by measures to manage each of them. We are hopeful that by the end of this report, we will be gaining a handful experience over the concepts of bond valuation and various risk associated with them.
1.a) Using the Present Value function in the excel spreadsheet for cash ...