FINDING BOND YIELD- USING EITHER EXCEL FUNCTION IRR OR RATE Year 0 1 NPV of Bond Cash Flows Cash flow -800 100 100 100 100 100 100 100 1100 2 3 4 5 6 1200 Data table: Effect of discount rate on NPV 1,000.00 0% 1,000.00 2% 786.04 4% 603.96 6% 448.39 8% 314.93 10% 200.00 12% 100.65 14% 14.45 16% -60.62 18% -126.21 20% -183.72 7 1000 800 600 400 200 8 NPV 0 Yield *could be solved using either IRR or RATE 5% 10% 15% 20% -200 -400 Discount rate