The bond-related formulas and functions in the previous chapters assume that every period is the same length. For example, that coupon payments occur every three, six, or twelve months. Some bonds have irregular first or last periods, where the payment dates don’t fit any of those patterns. When you want to calculate the price of a bond with an odd last period, use the ODDLPRICE function.
- [Voiceover] The bond-related formulas and functions…in the previous chapters assume…that every period is the same length.…For example, that coupon payments occur…every three, six, or 12 months.…Some bonds have irregular first or last periods, though,…where the payment dates don't fit any of those patterns,…so Excel includes a set of functions…you can use to evaluate those securities.…In this movie, I will show you how to calculate…the price of a security with an odd last period.…My sample file is OddLastPrice_06_03,…and you can find it in the chapter six folder…of your exercise files collection.…
We need to know several different things…to calculate the price for a security…with an odd last period.…The first is the settlement date,…and that is the date on which you…take possession of the security.…Next is the maturity date, and that is when your principal…plus accumulated interest is returned.…The last coupon date is the date…of the last coupon interest that's paid to you.…Note that the last coupon date…is before the settlement date.…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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