This worksheet is meant to accompany the bond valuation and bond yield tutorials at http://www.tvmcalcs.com.

The first two worksheets are for the bond valuation tutorial, and the second two are for the bond yield tutorial.

Bond Valuation Example Face Value Annual Coupon Rate Annual Required Return Years to Maturity Payment Frequency Value of Bond $ 1,000 8.00% 9.50% 3.0 2

$ 961.63

=-PV(B4/B6,B5*B6,B3/B6*B2,B2) Valuation Between Periods, the Hard Way Fraction of Period Elapsed 0.50 Bond Value Between Payment Dates $ 984.20 This is the "Dirty Price" Accrued Interest 20.00 Clean Price $ 964.20

Description Settlement date Maturity date Percent coupon Price Redemption value Frequency 30/360 basis Yield

Data 4/7/2013 7/1/2019 10.000% 115.52 100 2 4 6.89%

Bond Valuation Example Face Value $ 1,000 Redemption Value as % of Par 100.00 Annual Coupon Rate 8.00% Annual Required Return 9.50% Settlement Date 12/15/2007 Maturity Date 9/15/2010 Payment Frequency 2 Day Count Basis 0 Value of Bond as % of Par Value of Bond in Dollars 96.42 $ 964.20 =PRICE(B6,B7,B4,B5,B3,B8,B9) =B11/100*B2

Bond Yield Example Data Face Value $ 1,000 Annual Coupon Rate 8.00% Annual Required Return 9.50% Years to Maturity 3.0 Years to Call 1.0 Call Premium % 3.00% Payment Frequency 2 Value of Bond $ 961.63

Bond Yield Calculations Current Yield 8.32% Yield to Maturity 9.50% Yield to Call 15.17%

=(B3*B2)/B10 =RATE(B5*B8,B3/B8*B2,-B10,B2)*B8 =RATE(B6*B8,B3/B8*B2,-B10,B2*(1+B7))*B8

Bond Yield Example Face Value $ Redemption Value as % of Par Annual Coupon Rate Settlement Date Maturity Date Call Date Call Premium Payment Frequency Day Count Basis Value of Bond as % of Par Value of Bond in Dollars $

1,000 100.00 7.00% 10/1/2012 4/29/2017 5/15/2018 0.00% 2 4 112.00 1,120.00 6.25% 4.10% 4.56% =(B4*B3)/B13 =YIELD(B6,B7,B4,B13,B3,B10,B11) =YIELD(B6,B8,B4,B13,B3*(1+B9),B10,B11)

Bond Yield Calculations Current Yield Yield to Maturity Yield to Call

3*(1+B9),B10,B11)

This workbook is Copyright 2005 - 2007 by Timothy R. Mayes, Ph.D. Please visit: http://www.tvmcalcs.com/ You are free to use and redistribute it as long as this notice is kep intact. However, I retain all rights to the worksheet.