Description
This model helps the students to calculate the value for a bond for a period of 25 years.
BOND PRICE VALUE OF A BOND
This Model Calculates The Value / Price of a Bond Assumes Semiannual Interest Payments 25 Year Maximum (Maturity); Years Entered As .5, 1.0, 1.5, 2.0, etc.
DISCOUNTED DISCOUNTED SUM OF INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS ($1,000.00) $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $47.62 $45.35 $43.19 $41.14 $39.18 $37.31 $35.53 $33.84 $32.23 $30.70 $29.23 $27.84 $26.52 $25.25 $24.05 $22.91 $21.81 $20.78 $19.79 $18.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ($1,000.00) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $376.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ($1,000.00) CASH FLOWS FOR CALCULATION OF IRR ($1,000.00) $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $1,050.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IRR = 10.00%
PERIOD
INPUTS
FACE/PAR AMOUNT OF BOND (e.g., $1000) COUPON INTEREST RATE PER YEAR (e.g., .08, .09, .10) YEARS TO MATURITY (e.g., 2.0, 1.5, 6.0, 25.0) $1,000.00 10.00% 10.0 Rate / Period REQUIRED RATE OF RETURN / DISCOUNT RATE (e.g., .10, .08) 10.00% 5.00%
0 1 2 3 4 5 6 7 8 9
$47.62 $45.35 $43.19 $41.14 $39.18 $37.31 $35.53 $33.84 $32.23 $30.70 $29.23 $27.84 $26.52 $25.25 $24.05 $22.91 $21.81 $20.78 $19.79 $395.73 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV = $1,000.00
OUTPUT
PRICE / VALUE OF BOND $1,000.00
10 11 12 13 14 15
DATA TABLE ROR CHANGES 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1%
$1,000.00 $ 705.46 $ 745.14 $ 788.12 $ 834.72 $ 885.30 $ 940.25 $ 1,000.00 $ 1,065.04 $ 1,135.90 $ 1,213.19 $ 1,297.55 $ 1,389.73 $ 1,490.54 $ 1,600.90 $ 1,721.82 $ 1,854.43
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
BOND PRICE AS DISCOUNT RATE CHANGES
$2,000.00
$1,750.00
$1,500.00
$1,250.00 BOND PRICE
$1,000.00
$750.00
$500.00
$250.00
$0% 2% 4% 6% 8% 10% 12% 14% 16% 18% DISCOUNT RATE
BOND YIELD TO MATURITY
YIELD TO MATURITY
This Model Calculates The Yield To Maturity For A Bond Semiannual Interest Payments 25 Year Maximum (Maturity)
DISCOUNTED DISCOUNTED SUM OF INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED PERIOD CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS FOR CALCULATION OF IRR ($1,220.00) $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $1,063.13 IRR = 10.18%
INPUTS
PAR / FACE VALUE OF BOND (e.g., $1,000) COUPON INTEREST RATE PER YEAR (e.g., .08, .10, .125) YEARS TO MATURITY (e.g., 2.0, 1.5, 10.0, 21.5) $1,000.00 12.63% 25.0 Rate / Period CURRENT PRICE OF BOND (e.g., $1052.50) $1,220.00 6.31%
0 1 2 3 4 5 6 7 8 9 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $59.38 $55.85 $52.53 $49.42 $46.48 $43.72 $41.13 $38.68 $36.39 $34.23 $32.19 $30.28 $28.48 $26.79 $25.20 $23.71 $22.30 $20.97 $19.73 $18.56 $17.46 $16.42 $15.44 $14.53 $13.66 $12.85 $12.09 $11.37 $10.70 $10.06 $9.46 $8.90 $8.37 $7.88 $7.41 $6.97 $6.56 $6.17 $5.80 $5.46 $5.13 $4.83 $4.54 $4.27 $4.02 $3.78 $3.55 $3.34 $3.14 $2.96
($1,220.00) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00
($1,220.00) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $46.86
($1,220.00) $59.38 $55.85 $52.53 $49.42 $46.48 $43.72 $41.13 $38.68 $36.39 $34.23 $32.19 $30.28 $28.48 $26.79 $25.20 $23.71 $22.30 $20.97 $19.73 $18.56 $17.46 $16.42 $15.44 $14.53 $13.66 $12.85 $12.09 $11.37 $10.70 $10.06 $9.46 $8.90 $8.37 $7.88 $7.41 $6.97 $6.56 $6.17 $5.80 $5.46 $5.13 $4.83 $4.54 $4.27 $4.02 $3.78 $3.55 $3.34 $3.14 $49.82 NPV = $1,000.00
OUTPUT
YIELD TO MATURITY CURRENT YIELD CAPITAL GAINS YIELD EFFECTIVE ANNUAL RATE 10.18% 10.35% -0.17% 10.43%
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
YIELD TO CALL
YIELD TO CALL
This Model Calculates Yield To First Call Date For A Callable Bond Semiannual Interest Payments 25 Year Maximum (Maturity)
CASH FLOWS CASH FLOWS DISCOUNTED DISCOUNTED SUM OF FOR DISCOUNTED DISCOUNTED SUM OF FOR INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATIO INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATION CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS N OF IRR CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS OF IRR ($865.49) $41.25 $39.62 $0.00 ($865.49) $0.00 ($865.49) $39.62 ($865.49) $41.25 $41.25 $39.62 ($865.49) $0.00 ($865.49) $0.00 ($865.49) $39.62 ($865.49) $41.25
PERIOD
INPUTS
PAR / FACE VALUE OF BOND (e.g., $1000) COUPON INTEREST RATE PER YEAR (e.g., .06, .105) YEARS TO MATURITY (e.g., 2.0, 1.5) $1,000.00
0 1
8.25% 15.0 Rate / Period
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $27.53 $26.44 $25.40 $24.39 $23.42 $22.50 $21.60 $20.75 $19.93 $19.14 $18.38 $17.65 $16.95 $16.28 $15.64 $15.02 $14.42 $13.85 $13.30 $12.77 $12.27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $297.41 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $27.53 $26.44 $25.40 $24.39 $23.42 $22.50 $21.60 $20.75 $19.93 $19.14 $18.38 $17.65 $16.95 $16.28 $15.64 $15.02 $14.42 $13.85 $13.30 $12.77 $309.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV = $1,000.00
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $1,041.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IRR = 10.00%
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $27.53 $0.00 $0.00 $0.00 $0.00 $22.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,050.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $700.87 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $728.41 $0.00 $0.00 $0.00 $0.00 $22.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV = $1,055.87
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $1,091.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IRR = 12.71%
CURRENT PRICE OF BOND (e.g., $1050.25) CALL PRICE OF BOND (e.g., $1050) YEARS TO FIRST CALL (e.g., 2.0, 2.5)
$ 865.49 $1,050.00 5.0
4.13%
OUTPUT
YIELD TO CALL **CURRENT YIELD **CAPITAL GAINS YIELD YIELD TO MATURITY **CURRENT YIELD **CAPITAL GAINS YIELD EFFECTIVE ANNUAL RATE 12.71% 9.53% 3.18% 10.00% 9.53% 0.47%
13.10%
doc_804159706.xls
This model helps the students to calculate the value for a bond for a period of 25 years.
BOND PRICE VALUE OF A BOND
This Model Calculates The Value / Price of a Bond Assumes Semiannual Interest Payments 25 Year Maximum (Maturity); Years Entered As .5, 1.0, 1.5, 2.0, etc.
DISCOUNTED DISCOUNTED SUM OF INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS ($1,000.00) $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $47.62 $45.35 $43.19 $41.14 $39.18 $37.31 $35.53 $33.84 $32.23 $30.70 $29.23 $27.84 $26.52 $25.25 $24.05 $22.91 $21.81 $20.78 $19.79 $18.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ($1,000.00) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $376.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ($1,000.00) CASH FLOWS FOR CALCULATION OF IRR ($1,000.00) $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $1,050.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IRR = 10.00%
PERIOD
INPUTS
FACE/PAR AMOUNT OF BOND (e.g., $1000) COUPON INTEREST RATE PER YEAR (e.g., .08, .09, .10) YEARS TO MATURITY (e.g., 2.0, 1.5, 6.0, 25.0) $1,000.00 10.00% 10.0 Rate / Period REQUIRED RATE OF RETURN / DISCOUNT RATE (e.g., .10, .08) 10.00% 5.00%
0 1 2 3 4 5 6 7 8 9
$47.62 $45.35 $43.19 $41.14 $39.18 $37.31 $35.53 $33.84 $32.23 $30.70 $29.23 $27.84 $26.52 $25.25 $24.05 $22.91 $21.81 $20.78 $19.79 $395.73 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV = $1,000.00
OUTPUT
PRICE / VALUE OF BOND $1,000.00
10 11 12 13 14 15
DATA TABLE ROR CHANGES 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1%
$1,000.00 $ 705.46 $ 745.14 $ 788.12 $ 834.72 $ 885.30 $ 940.25 $ 1,000.00 $ 1,065.04 $ 1,135.90 $ 1,213.19 $ 1,297.55 $ 1,389.73 $ 1,490.54 $ 1,600.90 $ 1,721.82 $ 1,854.43
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
BOND PRICE AS DISCOUNT RATE CHANGES
$2,000.00
$1,750.00
$1,500.00
$1,250.00 BOND PRICE
$1,000.00
$750.00
$500.00
$250.00
$0% 2% 4% 6% 8% 10% 12% 14% 16% 18% DISCOUNT RATE
BOND YIELD TO MATURITY
YIELD TO MATURITY
This Model Calculates The Yield To Maturity For A Bond Semiannual Interest Payments 25 Year Maximum (Maturity)
DISCOUNTED DISCOUNTED SUM OF INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED PERIOD CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS FOR CALCULATION OF IRR ($1,220.00) $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $1,063.13 IRR = 10.18%
INPUTS
PAR / FACE VALUE OF BOND (e.g., $1,000) COUPON INTEREST RATE PER YEAR (e.g., .08, .10, .125) YEARS TO MATURITY (e.g., 2.0, 1.5, 10.0, 21.5) $1,000.00 12.63% 25.0 Rate / Period CURRENT PRICE OF BOND (e.g., $1052.50) $1,220.00 6.31%
0 1 2 3 4 5 6 7 8 9 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $63.13 $59.38 $55.85 $52.53 $49.42 $46.48 $43.72 $41.13 $38.68 $36.39 $34.23 $32.19 $30.28 $28.48 $26.79 $25.20 $23.71 $22.30 $20.97 $19.73 $18.56 $17.46 $16.42 $15.44 $14.53 $13.66 $12.85 $12.09 $11.37 $10.70 $10.06 $9.46 $8.90 $8.37 $7.88 $7.41 $6.97 $6.56 $6.17 $5.80 $5.46 $5.13 $4.83 $4.54 $4.27 $4.02 $3.78 $3.55 $3.34 $3.14 $2.96
($1,220.00) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00
($1,220.00) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $46.86
($1,220.00) $59.38 $55.85 $52.53 $49.42 $46.48 $43.72 $41.13 $38.68 $36.39 $34.23 $32.19 $30.28 $28.48 $26.79 $25.20 $23.71 $22.30 $20.97 $19.73 $18.56 $17.46 $16.42 $15.44 $14.53 $13.66 $12.85 $12.09 $11.37 $10.70 $10.06 $9.46 $8.90 $8.37 $7.88 $7.41 $6.97 $6.56 $6.17 $5.80 $5.46 $5.13 $4.83 $4.54 $4.27 $4.02 $3.78 $3.55 $3.34 $3.14 $49.82 NPV = $1,000.00
OUTPUT
YIELD TO MATURITY CURRENT YIELD CAPITAL GAINS YIELD EFFECTIVE ANNUAL RATE 10.18% 10.35% -0.17% 10.43%
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
YIELD TO CALL
YIELD TO CALL
This Model Calculates Yield To First Call Date For A Callable Bond Semiannual Interest Payments 25 Year Maximum (Maturity)
CASH FLOWS CASH FLOWS DISCOUNTED DISCOUNTED SUM OF FOR DISCOUNTED DISCOUNTED SUM OF FOR INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATIO INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATION CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS N OF IRR CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS OF IRR ($865.49) $41.25 $39.62 $0.00 ($865.49) $0.00 ($865.49) $39.62 ($865.49) $41.25 $41.25 $39.62 ($865.49) $0.00 ($865.49) $0.00 ($865.49) $39.62 ($865.49) $41.25
PERIOD
INPUTS
PAR / FACE VALUE OF BOND (e.g., $1000) COUPON INTEREST RATE PER YEAR (e.g., .06, .105) YEARS TO MATURITY (e.g., 2.0, 1.5) $1,000.00
0 1
8.25% 15.0 Rate / Period
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $27.53 $26.44 $25.40 $24.39 $23.42 $22.50 $21.60 $20.75 $19.93 $19.14 $18.38 $17.65 $16.95 $16.28 $15.64 $15.02 $14.42 $13.85 $13.30 $12.77 $12.27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $297.41 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $27.53 $26.44 $25.40 $24.39 $23.42 $22.50 $21.60 $20.75 $19.93 $19.14 $18.38 $17.65 $16.95 $16.28 $15.64 $15.02 $14.42 $13.85 $13.30 $12.77 $309.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV = $1,000.00
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $1,041.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IRR = 10.00%
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $27.53 $0.00 $0.00 $0.00 $0.00 $22.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,050.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $700.87 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$38.05 $36.54 $35.09 $33.70 $32.37 $31.08 $29.85 $28.67 $728.41 $0.00 $0.00 $0.00 $0.00 $22.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV = $1,055.87
$41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $41.25 $1,091.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 IRR = 12.71%
CURRENT PRICE OF BOND (e.g., $1050.25) CALL PRICE OF BOND (e.g., $1050) YEARS TO FIRST CALL (e.g., 2.0, 2.5)
$ 865.49 $1,050.00 5.0
4.13%
OUTPUT
YIELD TO CALL **CURRENT YIELD **CAPITAL GAINS YIELD YIELD TO MATURITY **CURRENT YIELD **CAPITAL GAINS YIELD EFFECTIVE ANNUAL RATE 12.71% 9.53% 3.18% 10.00% 9.53% 0.47%
13.10%
doc_804159706.xls