Term 4 years

Annual Coupon Rate 5.00%

Yield to Maturity (YTM) 9.00%
Number of Payments per Year 2
Number of Periods to Maturity 8 nper
Face Value $1,000 fv

YTM / Pmts per Year 4.50% rate

Coupon Payment(annual coupon/periods) $25.00 pmt (annual coupon=1000*5%)

Calculate Bond Price using the Cash Flows

Period 0 1 2 3 4 5
Cash Flows $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
Bond Price $868.08

Calculate Bond Price Using PV Formula:

Bond Price $868.08

Calculate Bond Price Using NPV Formula:

Bond Price

Calculate Bond Price Using Price Function:

Bond Price $867.94
 6 7 8
$25.00 $25.00 $1,025.00
$19.20 $18.37 $720.76
Annual Coupon Rate 5.00%
Yield to Maturity (YTM) 9.00%
Number of Payments / Year 2
Number of Periods to Maturity 8
Face Value $1,000

YTM / Pmts per Year 4.50%

Coupon Payment $25.00

yield
maturity=coupon
rate,bond
price=face
value(Bond at par)
Yield to Maturity 1.00% 2.00% 3.00% 4.00% 5.00%
Bond Price $1,156.46 $1,114.78 $1,074.86 $1,036.63 $1,000.00

Coupon rate>yield to maturity(Premium Bond)

Higher discount rate, lower bond price

 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00%
$964.90 $931.26 $899.01 $868.08 $838.42 $809.96 $782.66 $756.45 $731.29

Coupon rate<yield to maturity(Discount Bond)

(capital earned,pay less to gain more)
, lower bond price
 15.00%
$707.13
Coupon Rate 10%
Par Value 1000 FV
Coupon Payment 100 PMT
Maturity 5 Nper
Frequency 1
Yield to Maturity 11% Rate

Bond Price ￥963.04 PV

Coupon Rate 10%

Par Value 1000 FV
Coupon Payment 100 PMT
Maturity 20 Nper
Frequency 1
Yield to Maturity 8% Rate

Bond Price ￥1,196.36 PV

Coupon Rate 14%

Par Value 1000 FV
Coupon Payment 70 PMT
Maturity 7 Nper
Frequency 1
Yield to Maturity 16% Rate

Bond Price ￥917.56 PV

PV Price 928.09
FV Par 1000
Pmt Coupon 100
Nper Total number of per 15
Rate Yield 11%
PV Price 1197.93
FV Par 1000
Pmt Coupon 50
Nper Total number of per 40
Rate Yield 4%
14

8%
par value*coupon rate/period

Annual yield 8%
PV(Price) 1197.93
FV(Face Value)-fixed 1000
PMT(Coupon payment) 50
Nper(Number of periods) 40
Rate(Yield to maturity) 4% semiannually
Annual Yield 8% coupon rate 10%=>prem

Next Year
PV(Price) ￥1,193.68
FV(Face Value)-fixed 1000
PMT(Coupon payment) 50
Nper(Number of periods) 38 one year passed, 40-2
Rate(Yield to maturity) 4%

Price Change -4.25 -0.35% Capital loss

Annual Coupon 100

Price 1197.93
Current Yield 8.35%

Annual Yield 8%
on rate 10%=>premium bond