Question: I need the excel formulas. Chapter Question 3 Input area: Coupon rate Settlement date Maturity date Yield to maturity Coupons per year Face value (%
I need the excel formulas.
Chapter Question 3 Input area: Coupon rate Settlement date Maturity date Yield to maturity Coupons per year Face value (% of par) Par value ($) 7% 1/1/00 1/1/13 8.4% 1 100 1,000 Pricing Specific Bonds in Excel =PRICE(Settlement, Maturity, Rate, Yld, Redemption,Frequency, Basis). =YIELD/Settlement, Maturity,Rate P, Redemption, Frequency, Basis). $ Output area: Settlement actual dale as a serial number. Maturity = actual date as a serial number Redemption and Prlice) - % of par value. Rate (coupon) and Yid = annual rates as decimals. Frequency - # of coupons per year. Basis = day count convention (enter "Z" for ACT/360). Price Using PRICE function 89.17 This means, your bond is a discount bond and is priced at 89.17 Percent of the face value. =PRICE(D8, D9,0.07.0.084,100,1) Convert into percentage 0.89 This is the percentage in decimal points. =(89.17/100) Your Discount Bond Price $ 891.74 This is the actual value of your discount bond. =0.89* 1000
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