1.

) DISC Function
An investor purchased a bond on February 11, 2013 which was issued last
December 14, 2012 with a price per $100 of 60. The bond is expected to mature on
November 1, 2015 with an amount of 95 per $100 face value. Calculate the
discount rate of the bond
A B
1 settlement 02/11/13
2 maturity 11/01/15
3 pr 60
4 redemption 95
5 basis 2

=DISC(B1,B2,B3,B4,B5)
= 0.133567

Manual:
Redemption par x B
Redemption dsm
95-60 x 360
95 993
= 0.133567
2.) ACCRINTM Function
An investor purchased a security issued on January 12, 2014 with a par value of
$5000 and an interest rate of 5% which will mature on March 1, 2015. Compute for
the interest accrued expected to be paid at maturity.
A B
1 issue 01/12/14
2 settlement 03/01/15
3 rate 0.05
4 par 5000
5 basis 2
=ACCRINTM(B1,B2,B3,B4,B5)
=286.8056

3.) ACCRINTM Function

A security which was issued on September 10, 2010 was purchased by a company.
The security has a par value of $1500 and an interest rate of 12% which will mature
on November 25, 2015. Compute for the interest accrued expected to be paid at
maturity.
A B
1 issue 09/10/10
2 settlement 11/25/15
3 rate 0.12
4 par 1500
5 basis 1
=ACCRINTM(B1,B2,B3,B4,B5)
=937.5445

4.) PDURATION Function

How many years would it take for an investment of $3500 earning 14% interest
annually to reach $5000?
A B
1 rate 0.14
2 pv 3500
3 fv 5000
=PDURATION(B1,B2,B3)
=2.72212215 years

Manual:
log (5000) log (3500)
log ( 1 + 0.14)
=2.722122215 years
 5.) PDURATION Function
How many years would it take for an investment of $1000 earning 25% interest
annually to reach $3000?
A B
1 rate 0.25
2 pv 1000
3 fv 3000

=PDURATION(B1,B2,B3)
=4.923343212 years

Manual:
log (3000) log (1000)
log ( 1 + 0.25)
=4.923343212 years

6.) COUPNCD Function

Find the next coupon date of a coupon which was issued last January 13, 2011 and
was purchased on April 20, 2011. The coupon is paid semiannually and is expected
to mature on October 1, 2013.
A B
1 settlement 04/20/11
2 maturity 10/01/13
3 frequency 2
4 basis 2

=COUPNCD(B1,B2,B3,B4)
=40817 or October 1, 2011

7.) COUPNCD Function

Find the next coupon date of a coupon which was purchased on August 9, 2012. The
coupon is paid annually and is expected to mature on February 8, 2014.
A B
1 settlement 08/09/12
2 maturity 02/08/14
3 frequency 1
4 basis 1

=COUPNCD(B1,B2,B3,B4)
=41313 or February 8, 2013

8.) COUPDAYBS
An investor bought a coupon on July 18, 2009. The coupon is paid quarterly and is
expected to mature on December 28, 2011. Find the number of days between the
beginning and the end of the coupon period.
A B
1 settlement 07/18/09
2 maturity 12/28/11
3 frequency 4
4 basis 2

=COUPDAYBS(B1,B2,B3,B4)
=90 days

9.) NPV
Find the Net Present Value of an investment with an annual discount rate of 5%. The
initial cost of investment is $80000 and the following returns for 5 years are the ff:
1st year: $12000

2nd year: $23000

3rd year: $29000
4th year: $36000
5th year: $42000
A B
1 rate 0.05
2 value 1 -80000
3 value 2 12000
4 value 3 23000
5 value 4 29000
6 value 5 36000
7 value 6 42000
=NPV(A1,{-A2,A3,A4,A5,A6,A7})
=$37,968.50