Calculating the Price of Bonds for 40 periods..

Excel Assn..jpg

So I have an assignment for school and I was hoping that someone could get me started in the right direction.

I found this Youtube video but am not quite sure how to plug in the information from my assignment to make it work.

http://www.youtube.com/watch?v=tJLR3se4Pa4

Any help is appreciated. Please don't hesitate to post your thoughts. Thanks for taking a look.

Bump - Would really appreciate some help here. Thanks again.

Originally Posted by FDibbins

Hi and welcome to the forum

What have you done so far on this?

It is against forum policy tio do your homework for you, but we can assist and guide youi with what you have already done (I know you said "get you started in the right direction")

Also, Please do not upload a picture of your file...rather, upload a sample of your workbook, showing what data you are working with, a few samples of your expected outcome is (manually entered is ok) and how you arrived at that. (exclude sensitive info). Pictures are pretty much impossible to edit, and no-one wants to re-type your data for you Also, not all members can upload picture files (Company firewalls and stuff)

Gotchya, I haven't done much because I'm not sure to how figure it out via formulas in Excel (which is how it's supposed to be done). We just did something like this but it was with a BA II plus calculator.

So the information about the bonds is as followed..

A. 30 year maturity but 10 years have passed since issuance
B. Coupon of 6.25%
C. Face value is $1000
D. Semi-Annual Payments
E. A+ / A1 ratings
F. Current required rate of return is: 4.25%

And what I need to do with Excel is calculate the price of the bonds at each of its 6 month intervals. I need to use formulas and cell references in my calculation of the bond value and it says "the required rate of return remains constant".

There's two different bonds to price but I think I can do the second one if I can figure out how to do the first one. Hopefully this is enough information to get this started. Thanks for the pointers FDibbins.

Okay so I'm in Excel, in the "formulas" tab and clicked the "financial" tab and after a little research I found that the "Price" formula is what I need but I can't get it to compute right.

-It's my understanding that I need to put in a "maturity date", so I put in today's date, 20 years from now.

-Maturity Date: .0625

-Yield: .0425

-Redemption: The site that I was going off of (I'll post the link below) said to put "100" here because we'll never pay more than the bond is worth.

http://academic.brooklyn.cuny.edu/ec...an/EXCELHW.htm


.. I'm pretty stuck now. I'll keep trying different things but would appreciate a little help. Thanks.

Bump .. Anyone have any ideas?

bump.. Please help!