Coupon Bond Formula Excel Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Let us take an example of bonds issued by company XYZ Ltd that pays coupons annually. The company plans to issue
5,000 such bonds and each bond has a par value of $1,000 with a coupon rate of 7% and it is to mature in 15 years.
The effective yield to maturity is 9%. Determine the price of each coupon bond and the money to be raised by XYZ
Ltd through this bond issue.

Particulars Value
Frequency in a year 3
Yield to Maturity (YTM) 9%
Coupon Rate (C) $70
Par value $1,000
Years to Maturity 5
No. of Periods 15
Bond Price 838.79
 mpany plans to issue
mature in 15 years.
to be raised by XYZ
Let us take an example of bonds issued by company ABC Ltd that pays semi-annual coupons. Each bond has a par value
$1,000 with a coupon rate of 8% and it is to mature in 5 years. The effective yield to maturity is 7%. Determine the price
each coupon bond issued by ABC Ltd.

Particulars Value
Frequency in a year 2
Yield to Maturity (YTM) 7.00%
Coupon Rate (C) 8.00%
Par value $1,000.00
Years to Maturity 5
No. of Periods 10
Bond Price $1,041.58
Traded at Discount / Premium? Traded at Premium
s. Each bond has a par value of
ty is 7%. Determine the price of