Bond Excel

This document contains calculations related to bond valuation and bond yields. It includes a table showing the present value and cash flows of a bond over 20 years with a par value of $1000, coupon rate of 10% and yield to maturity of 8%. It also includes calculations for bond problems with varying coupon rates, maturity dates, and yields.

Uploaded by

Chester

Available Formats

Download as XLSX, PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

16 views

Bond Excel

Uploaded by

Chester

Available Formats

Download as XLSX, PDF, TXT or read online on Scribd

You are on page 1/ 15

8%

20 years
1000 Par value
10% YTM Years 0 1 2 3
Cash payments 40 40 40
0 PV 38.09524 36.28118 34.5535
1 40 38.09524
2 40 36.28118
3 40 34.5535
4 40 32.9081
5 40 31.34105 828.4091
6 40 29.84862
7 40 28.42725
8 40 27.07357
9 40 25.78436
10 40 24.55653
11 40 23.38717
12 40 22.2735
13 40 21.21285
14 40 20.20272
15 40 19.24068 686.3635
16 40 18.32446
17 40 17.45187
18 40 16.62083
19 40 15.82936
20 40 15.07558
21 40 14.35769
22 40 13.67399
23 40 13.02285
24 40 12.40272
25 40 11.81211
26 40 11.24963
27 40 10.71393
28 40 10.20375
29 40 9.717853
30 40 9.255098
31 40 8.814379
32 40 8.394647
33 40 7.994902
34 40 7.614192
35 40 7.251611
36 40 6.906297
37 40 6.577425
38 40 6.264215
39 40 5.965919
40 1040 147.7275
4 5 6 7 8 9 10 11 12 13
40 40 40 40 40 40 40 40 40 40
32.9081 31.34105 29.84862 28.42725 27.07357 25.78436 24.55653 23.38717 22.2735 21.21285

9 YEAR
142.0457 1000
828.4091 Coupon rat 10%
YTM 8%

0
1 100 92.59259
2 100 85.73388
3 100 79.38322
4 100 73.50299
5 100 68.05832
6 100 63.01696
17.15909 7 100 58.34904
8 100 54.02689
9 1100 550.2739

624.6888 6.246888
500.249
1124.938
14 15 16 17 18 19 20 21 22 23
40 40 40 40 40 40 40 40 40 40
20.20272 19.24068 18.32446 17.45187 16.62083 15.82936 15.07558 14.35769 13.67399 13.02285

1124.938
24 25 26 27 28 29 30 31 32 33
40 40 40 40 40 40 40 40 40 40
12.40272 11.81211 11.24963 10.71393 10.20375 9.717853 9.255098 8.814379 8.394647 7.994902
34 35 36 37 38 39 40
40 40 40 40 40 40 1040
7.614192 7.251611 6.906297 6.577425 6.264215 5.965919 147.7275
ii) Time 9 years
Coupon rat 10%
YTM 8%

0
1 100 92.59259
2 100 85.73388
3 100 79.38322 1124.938
4 100 73.50299
5 100 68.05832
6 100 63.01696
7 100 58.34904
8 100 54.02689
9 1100 550.2739

6.246888 624.6888
500.249
1124.938
FV 100
Coupon Ra 12%
YTM 6%
Current Ma 100

0 1 2 3 4 5 6
12 12 12 12 12 112
11.32075 10.67996 10.07543 9.50512396 8.967098 78.95558 129.5039

0.087416 0.082468 0.0778 0.0733964 0.069242 0.609677

0.087416 0.164936 0.233401 0.29358562 0.346209 3.658062 4.78361

4.51284
Opening D 1/1/2016
Closing Da 1/1/2022
Coupon Rt 12%
YTM 6%

4.51284007
i)
Coupon Ra 10%
YTM 10%
Years 10
Lets assum 100

Proportio
Proportio n of Bond
PV of cash n of bond Price *
Years Cash Flow Flows price Time
1 10 9.09090909 0.090909 0.090909
2 10 8.26446281 0.082645 0.165289
3 10 7.51314801 0.075131 0.225394
4 10 6.83013455 0.068301 0.273205
5 10 6.20921323 0.062092 0.310461
6 10 5.6447393 0.056447 0.338684
7 10 5.13158118 0.051316 0.359211
8 10 4.6650738 0.046651 0.373206
9 10 4.24097618 0.04241 0.381688
10 110 42.4097618 0.424098 4.240976
Sum 100 6.759024 6.144567

Part ii) Opening D 1/1/2014

Closing Da 1/1/2022
Coupon Ra 8%
YTM 12%

Proportio
PV of Proportio n of Bond
cash n of bond Price *
5.333104 Years Cash Flow Flows price Time
1 8 7.142857 0.089141 0.089141
2 8 6.377551 0.079591 0.159181
3 8 5.694242 0.071063 0.213189
4 8 5.084145 0.063449 0.253797
5 8 4.539415 0.056651 0.283255
6 8 4.053049 0.050581 0.303488
7 8 3.618794 0.045162 0.316133
8 108 43.61939 0.544362 4.354893
Sum 80.12944 5.973077
Opening D 1/1/2015
Closing Da 1/1/2025
Coupon Ra 0.10
YTM 0.10

6.14456711
5.3331042