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 $ 1,000
Annual Coupon Rate 8.00%
Annual Required Return 9.50%
Years to Maturity 3.0
Payment Frequency 2

Value of Bond $ 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
 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 96.42 =PRICE(B6,B7,B4,B5,B3,B8,B9)

Value of Bond in Dollars $ 964.20 =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% =(B3*B2)/B10
Yield to Maturity 9.50% =RATE(B5*B8,B3/B8*B2,-B10,B2)*B8
Yield to Call 15.17% =RATE(B6*B8,B3/B8*B2,-B10,B2*(1+B7))*B8
 Bond Yield Example
Face Value $ 1,000
Redemption Value as % of Par 100.00
Annual Coupon Rate 8.00%
Annual Required Return 9.50%
Settlement Date 9/15/2007
Maturity Date 9/15/2010
Call Date 9/15/2008
Call Premium 3.00%
Payment Frequency 2
Day Count Basis 0

Value of Bond as % of Par 96.16

Value of Bond in Dollars $ 961.63

Bond Yield Calculations

Current Yield 8.32% =(B4*B3)/B13
Yield to Maturity 9.50% =YIELD(B6,B7,B4,B13,B3,B10,B11)
Yield to Call 15.17% =YIELD(B6,B8,B4,B13,B3*(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.