FINANCE Formula Help

J

JCH

I am trying to set up a spreadsheet function to get the following answers
but am having little luck. Can anyone point me in the right direction for a
formula to get the required answers?

Q: Consider a bond with a face value of $1,000. The coupon payment is made
semi-annually and the yield to maturity is 12% (effective annual yield). How
much would you pay for the bond if:
A: The coupon rate is 8% and the time to maturity is 20 years?
B: The coupon rate is 10% and the time to maturity is 15 years?

Any help would be appreciated...

JCH
 
K

kcc

Look in help for the PRICE function.
Only trick is that the yield to maturity is expressed in the same frequency
as the coupon payments, so you have to convert 12% to BEY.
kcc
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Finance Formula Help 3
How to calculate bond value and current yield 2
Bond premium amortization using the constant yield method 1
duration 1
Excel PRICE function: How does it compute Issue Date of the Security 5
Reverse PRICE function 32
Calling the "Duration" function in excel to be used in VBA? 2
finding a bond coupon rate 2

Top