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by Brad Jordan and Joe Smolira Version 10.0 Chapter 6 In these spreadsheets, you will learn how to use the follow The following conventions are used in these spreadsheets: 1) Given data in blue 2) Calculations in red NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-In" be installed in Excel. To install these, click on the File button then "Options," "Add-Ins" and select "Go." Check "Analysis ToolPak" and "Solver Add-In," then click "OK." Ross, Westerfield, and Jordan's Excel Master Essentials of Corporate Finance, 10th edition PRICE YIELD MDURATION COUPDAYSNC ACCRINT HLOOKUP Scroll bars
wing Excel functions: :
Chapter 6 - Section 1 Bonds and Bond Valuation Coupon rate: 8.00% Years to maturity: 10 Yield to maturity: 7.50% Par value: $ 1,000 Since the bond has semiannual payments, the coupon payments will be: Coupon payments: $ 40.00 Now we can find the present value of the coupon payments, the present value of par, and Present value of coupon payments: $ 555.85 Present value of par: 478.89 Bond price: $ 1,034.74 Of course, we could have entered the coupon payments and par value in the same PV fun Bond price: $1,034.74 Although you can value a bond with the PV function, Excel has numerous functions that c What is the price of a bond with the following characteristics? Settlement date: 1/1/2000 Maturity date: 1/1/2010 Annual coupon rate: 7.50% Yield to maturity: 8.40% Face value (% of par): 100 Coupons per year: 2 Bond price (% of par): 93.991 RWJ Excel Tip To calculate a bond price, we can use the PRICE function as follows: As with any financial instrument, the price of a bond is just the present value of the future the following characteristics?
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