BOND PRICING Basics Annual Percentage Rate

Inputs
Rate Convention: 1 = EAR, 0 = APR 0
Annual Coupon Rate (CR) 5.0%
Yield to Maturity (Annualized) (y) 9.0%
Number of Payments / Year (NOP) 2
Number of Periods to Maturity (T) 8
Face Value (FV) $1,000

Outputs
Discount Rate / Period (RATE) 4.5%
Coupon Payment (PMT) $25

Calculate Bond Price using the Cash Flows

Period 0 1 2 3 4 5 6
Time (Years) 0.0 0.5 1.0 1.5 2.0 2.5 3.0
Cash Flows $25.00 $25.00 $25.00 $25.00 $25.00 $25.00
Present Value of Cash Flow $23.92 $22.89 $21.91 $20.96 $20.06 $19.20
Bond Price $868.08

Calculate Bond Price using the Formula

Bond Price $868.08

Calculate Bond Price using the PV Function

Bond Price $868.08

Calculate Bond Price using the PRICE Function (under APR)

Bond Price $868.08
 7 8
3.5 4.0
$25.00 $1,025.00
$18.37 $720.76