Finance Questions Explanation needed please?

Question

I am trying to understand these concepts. Can someone please explain how a 7% coupon implies $35 per period, or how a 10% coupon implies a $50 per period.

Also, how do you put this equation into a spreadsheet to determine the value of r?

1010= 35*[1-1/(1+r) 22 ]/r + 1000 /(1+r)22

Each 22 is to the power, simply no superscript in this field. Thanks in advance for any explanations that you can give.

Please not, not looking for the answers to the problems, just how to put it in a spreadsheet.

Answer 1

When talking coupons (interest) and periods it is safe to assume that you are talking about bonds which normally pay interest semi-annually, or twice a year, every 6 months.  A bond is quoted in $1000 increments.

A 10% coupon on a $1000 will give you $100 per year or $50 per semi-annual period.