[SOLVED] via previous thread "Formula for bond price". Slight "bug" in PRICE function still exists in Excel 2007.
Good day!
I am trying to validate the PRICE function using the longhand formula provided in Excel Help.
I am able to get the exact price for my sample bonds, except for a particular bond with the following details:
Settlement Date 03/27/2013
Maturity 06/29/2013
Coupon Rate 9.625%
Yield 0.350%
Redemption 100
Frequency 2
Basis 30-day rule
Using the PRICE function, result is 102.366057042189
Using the long-hand formula, with below details: my result is 102.366097039549 (diff of -0.00004)
DSC 92
N 1
A 88
E 180
Is there any reported bug on the PRICE function? Or were the values I used for variables DSC, N, A and E incorrect?
I get the exact result (exact zero difference) for all other bonds except this one.
Appreciate immediate help. Thank you!
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