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    sandersla's Avatar
    sandersla Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 23, 2009, 03:10 PM
    Current Bond Price: Am I on the right track
    A seven year bond with an 8% coupon rate has a yield to maturity of 9.15%. What is the current bond price? I arrived at my answer using the PV using the Excel. Am I on the right track?

    Par Value $1,000
    Bond 7 years
    Coupon rate 8%
    Yield to maturity 9.15%
    Current bond price $992.98
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Apr 24, 2009, 10:41 PM

    Using the PV in Excel is just going to come up with the same results that I get when using algebra equations. I've already tried numerous combinations of possible errors to get your answer and cannot. Using PV I can only do the same thing - try the same numerous combinations of possible errors. So knowing you used PV in Excel still does not give any information as to how you actually did it.

    Need to know what you're entering into the slots in Excel.
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