f V=ACCRINT(D10, D11 D18, D16 D19,020,0,FALSE) B E F Bond Markets Clean and Dirty Pricing Suppose we have the following corporate bond: 10 11 12 13 14 15 16 17 10 Issue date: 3/15/2015 First coupon date: 9/15/2015 Maturity date: 9/15/2042 Settlement date: 6/1/2019 Last coupon date: 3/15/2019 Next coupon date: 9/15/2019 Coupon rate: 8.00% Yield to maturity 7.30% Par value % of par) 100 13 Par value (s value) 1,000 20 Coupons per year 2 21 22 Using the Excel bond price function, we can find the price of the bond as: 23 24 Bond price: 25 Using the PRICE function in Excel returns the clean price. To find the invoice or dirty, price, we need to calculate the accrued interest Excel has a 26 function that calculates the accrued interest. Using ACCRINT, we find the accrued interest is: 27 20 Aescued interest incorrect) 5 336.8 107.27 29 2 Obviously this number is too hleh. When you allow computer programmers to program financial tunctions, veu often get errors, which is what we get in this case. First, ACCRINT requires the por value in dollars, not a percent of par, which is different from the price function. Second, the . , a , . accruen interest in this function is the total accrued interest since the bond was issued, a relatively simportant number. To get the ACCRIND function to work properly. We wlu have to adjust the inputs for the live date, we can use the date the last coupon payment was made, and the . 30 First Interest date is the date of the next coupon payment Using these adjstments, we find the scarved interest is! 51 32 Accrucd interest (correct () 33 34 The dirty price is the clear pe plus accrued interest, 35 36 Dirty price 37 36 39 40 41 42 f V=ACCRINT(D10, D11 D18, D16 D19,020,0,FALSE) B E F Bond Markets Clean and Dirty Pricing Suppose we have the following corporate bond: 10 11 12 13 14 15 16 17 10 Issue date: 3/15/2015 First coupon date: 9/15/2015 Maturity date: 9/15/2042 Settlement date: 6/1/2019 Last coupon date: 3/15/2019 Next coupon date: 9/15/2019 Coupon rate: 8.00% Yield to maturity 7.30% Par value % of par) 100 13 Par value (s value) 1,000 20 Coupons per year 2 21 22 Using the Excel bond price function, we can find the price of the bond as: 23 24 Bond price: 25 Using the PRICE function in Excel returns the clean price. To find the invoice or dirty, price, we need to calculate the accrued interest Excel has a 26 function that calculates the accrued interest. Using ACCRINT, we find the accrued interest is: 27 20 Aescued interest incorrect) 5 336.8 107.27 29 2 Obviously this number is too hleh. When you allow computer programmers to program financial tunctions, veu often get errors, which is what we get in this case. First, ACCRINT requires the por value in dollars, not a percent of par, which is different from the price function. Second, the . , a , . accruen interest in this function is the total accrued interest since the bond was issued, a relatively simportant number. To get the ACCRIND function to work properly. We wlu have to adjust the inputs for the live date, we can use the date the last coupon payment was made, and the . 30 First Interest date is the date of the next coupon payment Using these adjstments, we find the scarved interest is! 51 32 Accrucd interest (correct () 33 34 The dirty price is the clear pe plus accrued interest, 35 36 Dirty price 37 36 39 40 41 42