Settlement1/1/2015 This is the date of purchase. If not certain, fill in any date.

Maturity ### The formula in this case is = B3+365*8 , as the maturity period
Rate 12% The annual coupon rate
Yield 14% The required return per annum
Redemptio 100 Fill in the redemption value as a percentage of the par value
Frequency 2 This represents the number of times interest is paid in an year
Basis 3 3 represents the day count convention: actual no. of days/365 in i
Price 90.57 To get the result in B8, use the function =PRICE(B1,B2,B3,B4,B
Bond price is obtained per Rs.100 of the face value of the bond. Thus,had the red
Rs. 1000, the price would have been Rs.90.55 x 10
 Formula used
Price of the bond at present(PV) Rs. 800
Par value/Maturity value of the bond(FV) Rs. 1,000
Coupon rate per period 9%
Coupon amount payabole per period(PMT) =C3*C4 90
No. of periods(NPER) 8
Yield to Maturity(RATE) =RATE(C6,C5,-C2,C3,0) 13.20%

Yield to maturity of a bond can also be obtained using the Yield formula in Excel, as shown below
Formula used
Settlement As the date is not given, use any d 1/1/2015
Maturity =C11+365*8 ###
Rate 9%
Redemption 100
Frequency 1
Basis 3
Price =800/10 80
Yield to maturity =YIELD(C11,C12,C13,C17,C14,C1 13.20%
Note: The parameters are the same as that used in the spreadsheet illustration for 'PRI
 g1 g2 n(years) r D0(Rs)
20% 10% 6 15% 2
P 0
(Rs)
Formula used=E2*(1+A2)*(1-((1+A2)/(1+D2))^C2)/(D2-A2)+E2*(1+A2)*(1+A2)^(C2-1)*(1+B2)/(D2-B2)/(1+D2)^C2
70.76
 ga gn H(years) r D0(Rs)
50% 12% 5 16% 3
P0(Rs)
Formula used =E2*((1+B2)+C2*(A2-B2))/(D2-B2)
226.50