Ch 3_Bond Valuation.xlsx - BOND PRICING Annual Coupons...

Annual Coupons
Inputs
Today
10/3/2018
Maturity Date
10/3/2022
Number of Years to Maturity (T)
4
Face Value (PAR) $ 100.00
Coupon Rate
5%
Annual Coupon Payment
$ 5.00 Coupon rate*Par
Required Annual Yield
4.50%
Bond Price using a Timeline
Period
0 1 2 3 4
$ 5.00 $ 5.00 $ 5.00 $ 105.00
Cash Flows $4.78 $4.58 $4.38 $88.05
Present Value of Cash Flows
=C14/(1+$B$10)^C13
Bond Price $101.79 $4.78 $4.58 $4.38 $88.05
=-PV($B$10,C13,0,C14)
Bond Price using the NPV Function
$101.79
Bond Price =NPV(B10,C14:F14)
Bond Price using the Formula
Bond Price (P) `
Bond Price using the PV Function
$101.79
Bond Price =-PV(B10,B6,B9,B7)
Bond Price using the PRICE Function
101.79
Bond Price =PRICE(B4,B5,B8,B10,B7,1)
B
OND
P
RICING

Semi-annual Coupons
Inputs
Today