Bond Valuation
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Description
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Bond is a long-term
promissory note issued by a business or a business firm.
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Value of the bond price
is the sum of present value of annuities (or coupon) over the life of the
bond and present value
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of the face value of the bond.
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Bond value or price of
the bond is calculated on the basis of face value, coupon rate, market rate
and maturity period
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of the bond.
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Parameters
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1. Face Value
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Enter Face value of the
Bond
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2. Coupon Rate
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Enter Coupon Rate and
Select Compund(Annually, Semi-Annually, Quarterly, Monthly)
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3. Market Rate
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Enter Market Rate in
Percentage
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4. Maturity Period
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Enter Maturity Period in
Years and Months
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Calculator
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Data Entry
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OUTPUT
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Face Value ($)
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Bond Price
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Coupon Rate
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Number of Payments
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Market Rate
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Coupon Factor
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Coupon Amount
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Maturity Period
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Years
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Months
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Yield
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Case
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ABC Co. issued 7 year bond with coupon rate of 14
percent payable semiannually. Face Value of the bond is $ 1,000.00.
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Market rate of interest is 14 percent. Calculate
the price of the bond.
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Copyright @2010
All Right Reserved by SpreadsheetConverter
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http://www.spreadsheetconverter.com
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