[indianshaft]

After 3 years you decide to sell at 30 yr bond with a 10% semi annunal coupon rate. Bought at 1200. When you sell it market rates will be 2% higher.

Does that mean I have to calculate NPV after 3 years?

[codyman144]

Yes your on the right track...

What is your answer and maybe we can help.

Also reading this might help too:

Advanced Bond Concepts: Bond Pricing

[indianshaft]

I don't have an answer yet I will read and get one to you tomorrow sometime.

Do you by chance know how to work with an excel spreadsheet?

I have to do an amortization table, and it has 60 payments. And I also need to have beginning and ending balances. I have already copy and pasted the month payment using the pmt function.

I was wondering if there was a way to make it so that I could just calculate it all at once. Instead of going line by line if you know what I mean. Since the ending and beginning balances change as well as the interest and principle portion.

Thanks

[codyman144]

I'll get back to you tomorrow.

[indianshaft]

Also should I go onto the next page of the website or will I be able to find my answer there?

So far from what I have read, I have

n=60
r=.05 or 50 dollars
y= .06
par value= 1000

But on a financial calculator you don't have all that so what I have so far is because I took away 6 payments

n=54
I=.06
pv=-1200
pmt= 120
fv=1000

but what do I compute then?

[indianshaft]

I am getting an crazy answer, first I got something like 7,000 then 6,000 both of which I know can't be right.

[indianshaft]

All right so I took
n=54
I-12
pmt=120
fv=1000
pv=-1000

but I think that is wrong because it should be pmt 60 because it is semi annual and I should be 6 right?

[indianshaft]

I get -1000 so does that mean I sell the bond for 200?