Finance
Find the price of a bond
=PRICE(B1,B2,B3,B4,100,2)How it works in Excel
- B1 is the settlement date.
- B2 is the maturity date.
- B3 is the coupon rate.
- B4 is the yield.
- 100 is the amount repaid per 100 of face value.
- 2 means two coupons a year.
- The result is the price per 100 of face value.
- When the yield rises, the price falls.
The idea in general
A bond is worth the value today of all its future payments.
What I assumed
- The dates are in B1 and B2, the coupon is in B3 and the yield is in B4.
Check the result on your own data before relying on it.