BOND PRICING

Annual Payments

Inputs

Number of Years to Maturity

8

Number of Payments per Year

1

Face Value

$1,000

YTM

3.25%

Coupon Payment

$35.00

Bond Price using a Timeline

Year

1

2

3

4

5

6

7

8

Calculate the PV of the individual cash flows using the algebraic method. The value in the yellow cell will calculate on its own.

Cash Flows

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$1,035.00

Present Value of Cash Flows

Bond Price

$0.00

Bond Price using the PV Function

			Enter the Excel function PV. Hint: The results here should equal cell B16.

Bond Price