Using the same basic format as in 17-3, we can solve for bond price be entering the settlement date, the maturity date, the annual coupon rate, the ytm, the par value of the bond expressed as a percentage (100), and the number of coupons per year. Use the function = PRICE (A1, A2, A3, A4, A5, A6). Problem—solve for the price of a six year, 7 percentage coupon bond if the ytm is 8.25 percent.

1/1/2007 Settlement date = YEAR (year, month, day)*
1/1/2010 Maturity date = YEAR (year, month, day)*
0.1 Annual coupon rate
105.242 Bond price
100 Face value = par value
2 Coupon payments per year
0.08 Yield to maturity as a decimal