Join Curt Frye for an in-depth discussion in this video ODDLPRICE: Calculating the price of a security with an odd last period, part of Excel 2010: Financial Functions in Depth.
The bond related formulas and functions in the previous chapters assume that…every period is of the same length. For example,…that coupon payments occur every 3, 6 or 12 months.…Some bonds have irregular first or last periods though which means that the…payments dates don't fit any of those patterns.…For those securities Excel includes a set of functions you can use to evaluate them.…In this movie, I'll show you how to calculate the price for security with an odd,…meaning unusual, last period.…For this calculation we need to no the following items. The first is the…settlement date and that that is the date that you purchase and gain control of the security.…
Next is the security's maturity date. That is the last day of the investment and…the day that all proceeds and return of principle or due to you.…Then you have the last coupon date. That is the last time interest is paid. Then,…you have the coupon interest rate. That's the amount of money you get for each…payment every time you paid interest.…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Q: Where can I learn more about Excel formulas?
A: Discover more on this topic by visiting Excel formulas on lynda.com.
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Appropriate for all
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 5s
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