The document describes a model for calculating the value of a bond. It provides inputs like the face value of the bond, coupon interest rate, years to maturity, and required rate of return. It then shows the calculations to discount future cash flows from interest payments and principal repayment to get the present value, or price, of the bond. It also explores how the calculated bond price changes as the discount rate is varied.

1. BOND PRICE
VALUE OF A BOND
This Model Calculates The Value / Price of a Bond
Assumes Semiannual Interest Payments
25 Year Maximum (Maturity); Years Entered As .5, 1.0, 1.5, 2.0, etc.
DISCOUNTED DISCOUNTED SUM OF CASH FLOWS FOR
INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATION OF
PERIOD CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS IRR
INPUTS 0 ($1,000.00) ($1,000.00) ($1,000.00) ($1,000.00)
FACE/PAR AMOUNT OF BOND
(e.g., $1000) $1,000.00 1 $50.00 $47.62 $0.00 $0.00 $47.62 $50.00
COUPON INTEREST RATE PER
YEAR (e.g., .08, .09, .10) 10.00% 2 $50.00 $45.35 $0.00 $0.00 $45.35 $50.00
YEARS TO MATURITY (e.g., 2.0,
1.5, 6.0, 25.0) 10.0 3 $50.00 $43.19 $0.00 $0.00 $43.19 $50.00
Rate /
Period 4 $50.00 $41.14 $0.00 $0.00 $41.14 $50.00
REQUIRED RATE OF RETURN /
DISCOUNT RATE (e.g., .10, .08) 10.00% 5.00% 5 $50.00 $39.18 $0.00 $0.00 $39.18 $50.00
6 $50.00 $37.31 $0.00 $0.00 $37.31 $50.00
7 $50.00 $35.53 $0.00 $0.00 $35.53 $50.00
8 $50.00 $33.84 $0.00 $0.00 $33.84 $50.00
9 $50.00 $32.23 $0.00 $0.00 $32.23 $50.00
OUTPUT 10 $50.00 $30.70 $0.00 $0.00 $30.70 $50.00
PRICE / VALUE OF BOND $1,000.00 11 $50.00 $29.23 $0.00 $0.00 $29.23 $50.00
12 $50.00 $27.84 $0.00 $0.00 $27.84 $50.00
13 $50.00 $26.52 $0.00 $0.00 $26.52 $50.00
14 $50.00 $25.25 $0.00 $0.00 $25.25 $50.00
15 $50.00 $24.05 $0.00 $0.00 $24.05 $50.00
DATA TABLE ROR CHANGES $1,000.00 16 $50.00 $22.91 $0.00 $0.00 $22.91 $50.00
16% $1,000.00 17 $50.00 $21.81 $0.00 $0.00 $21.81 $50.00
15% $1,000.00 18 $50.00 $20.78 $0.00 $0.00 $20.78 $50.00
14% $1,000.00 19 $50.00 $19.79 $0.00 $0.00 $19.79 $50.00
13% $1,000.00 20 $50.00 $18.84 $1,000.00 $376.89 $395.73 $1,050.00
12% $1,000.00 21 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
11% $1,000.00 22 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
10% $1,000.00 23 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
9% $1,000.00 24 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
8% $1,000.00 25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
7% $1,000.00 26 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
6% $1,000.00 27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
5% $1,000.00 28 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
4% $1,000.00 29 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
3% $1,000.00 30 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
2% $1,000.00 31 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
1% $1,000.00 32 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
33 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
34 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
35 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
36 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
37 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
38 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
40 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
41 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
42 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
43 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
44 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
45 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
46 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
47 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
48 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
49 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NPV = IRR =
$1,000.00 10.00%
BOND PRICE AS DISCOUNT RATE CHANGES
$1,250.00
$1,000.00
$750.00
BOND PRICE
$500.00
$250.00
$-
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
DISCOUNT RATE

2. BOND YIELD TO MATURITY
YIELD TO MATURITY
This Model Calculates The Yield To Maturity For A Bond
Semiannual Interest Payments
25 Year Maximum (Maturity)
CASH FLOWS
DISCOUNTED DISCOUNTED SUM OF FOR
INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATION
PERIOD CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS OF IRR
INPUTS 0 ($1,220.00) ($1,220.00) ($1,220.00) ($1,220.00)
PAR / FACE VALUE OF BOND
(e.g., $1,000) $1,000.00 1 $63.13 $59.38 $0.00 $0.00 $59.38 $63.13
COUPON INTEREST RATE PER
YEAR (e.g., .08, .10, .125) 12.63% 2 $63.13 $55.85 $0.00 $0.00 $55.85 $63.13
YEARS TO MATURITY (e.g., 2.0,
1.5, 10.0, 21.5) 25.0 3 $63.13 $52.53 $0.00 $0.00 $52.53 $63.13
Rate /
Period 4 $63.13 $49.42 $0.00 $0.00 $49.42 $63.13
CURRENT PRICE OF BOND (e.g.,
$1052.50) $1,220.00 6.31% 5 $63.13 $46.48 $0.00 $0.00 $46.48 $63.13
6 $63.13 $43.72 $0.00 $0.00 $43.72 $63.13
7 $63.13 $41.13 $0.00 $0.00 $41.13 $63.13
8 $63.13 $38.68 $0.00 $0.00 $38.68 $63.13
9 $63.13 $36.39 $0.00 $0.00 $36.39 $63.13
OUTPUT 10 $63.13 $34.23 $0.00 $0.00 $34.23 $63.13
YIELD TO MATURITY 10.18% 11 $63.13 $32.19 $0.00 $0.00 $32.19 $63.13
CURRENT YIELD 10.35% 12 $63.13 $30.28 $0.00 $0.00 $30.28 $63.13
CAPITAL GAINS YIELD -0.17% 13 $63.13 $28.48 $0.00 $0.00 $28.48 $63.13
14 $63.13 $26.79 $0.00 $0.00 $26.79 $63.13
EFFECTIVE ANNUAL RATE #NAME? 15 $63.13 $25.20 $0.00 $0.00 $25.20 $63.13
16 $63.13 $23.71 $0.00 $0.00 $23.71 $63.13
17 $63.13 $22.30 $0.00 $0.00 $22.30 $63.13
18 $63.13 $20.97 $0.00 $0.00 $20.97 $63.13
19 $63.13 $19.73 $0.00 $0.00 $19.73 $63.13
20 $63.13 $18.56 $0.00 $0.00 $18.56 $63.13
21 $63.13 $17.46 $0.00 $0.00 $17.46 $63.13
22 $63.13 $16.42 $0.00 $0.00 $16.42 $63.13
23 $63.13 $15.44 $0.00 $0.00 $15.44 $63.13
24 $63.13 $14.53 $0.00 $0.00 $14.53 $63.13
25 $63.13 $13.66 $0.00 $0.00 $13.66 $63.13
26 $63.13 $12.85 $0.00 $0.00 $12.85 $63.13
27 $63.13 $12.09 $0.00 $0.00 $12.09 $63.13
28 $63.13 $11.37 $0.00 $0.00 $11.37 $63.13
29 $63.13 $10.70 $0.00 $0.00 $10.70 $63.13
30 $63.13 $10.06 $0.00 $0.00 $10.06 $63.13
31 $63.13 $9.46 $0.00 $0.00 $9.46 $63.13
32 $63.13 $8.90 $0.00 $0.00 $8.90 $63.13
33 $63.13 $8.37 $0.00 $0.00 $8.37 $63.13
34 $63.13 $7.88 $0.00 $0.00 $7.88 $63.13
35 $63.13 $7.41 $0.00 $0.00 $7.41 $63.13
36 $63.13 $6.97 $0.00 $0.00 $6.97 $63.13
37 $63.13 $6.56 $0.00 $0.00 $6.56 $63.13
38 $63.13 $6.17 $0.00 $0.00 $6.17 $63.13
39 $63.13 $5.80 $0.00 $0.00 $5.80 $63.13
40 $63.13 $5.46 $0.00 $0.00 $5.46 $63.13
41 $63.13 $5.13 $0.00 $0.00 $5.13 $63.13
42 $63.13 $4.83 $0.00 $0.00 $4.83 $63.13
43 $63.13 $4.54 $0.00 $0.00 $4.54 $63.13
44 $63.13 $4.27 $0.00 $0.00 $4.27 $63.13
45 $63.13 $4.02 $0.00 $0.00 $4.02 $63.13
46 $63.13 $3.78 $0.00 $0.00 $3.78 $63.13
47 $63.13 $3.55 $0.00 $0.00 $3.55 $63.13
48 $63.13 $3.34 $0.00 $0.00 $3.34 $63.13
49 $63.13 $3.14 $0.00 $0.00 $3.14 $63.13
50 $63.13 $2.96 $1,000.00 $46.86 $49.82 $1,063.13
NPV = IRR =
$1,000.00 10.18%

3. YIELD TO CALL
YIELD TO CALL
This Model Calculates Yield To First Call Date For A Callable Bond
Semiannual Interest Payments
25 Year Maximum (Maturity)
CASH FLOWS CASH FLOWS
DISCOUNTED DISCOUNTED SUM OF FOR DISCOUNTED DISCOUNTED SUM OF FOR
INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATIO INTEREST INTEREST PRINCIPAL PRINCIPAL DISCOUNTED CALCULATION
PERIOD CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS N OF IRR CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS CASH FLOWS OF IRR
INPUTS 0 ($865.49) ($865.49) ($865.49) ($865.49) ($865.49) ($865.49) ($865.49) ($865.49)
PAR / FACE VALUE OF
BOND (e.g., $1000) $1,000.00 1 $41.25 $39.62 $0.00 $0.00 $39.62 $41.25 $41.25 $39.62 $0.00 $0.00 $39.62 $41.25
COUPON INTEREST
RATE PER YEAR (e.g., .
06, .105) 8.25% 2 $41.25 $38.05 $0.00 $0.00 $38.05 $41.25 $41.25 $38.05 $0.00 $0.00 $38.05 $41.25
YEARS TO MATURITY
(e.g., 2.0, 1.5) 15.0 3 $41.25 $36.54 $0.00 $0.00 $36.54 $41.25 $41.25 $36.54 $0.00 $0.00 $36.54 $41.25
Rate /
Period 4 $41.25 $35.09 $0.00 $0.00 $35.09 $41.25 $41.25 $35.09 $0.00 $0.00 $35.09 $41.25
CURRENT PRICE OF
BOND (e.g., $1050.25) $865.49 4.13% 5 $41.25 $33.70 $0.00 $0.00 $33.70 $41.25 $41.25 $33.70 $0.00 $0.00 $33.70 $41.25
CALL PRICE OF BOND
(e.g., $1050) $1,050.00 6 $41.25 $32.37 $0.00 $0.00 $32.37 $41.25 $41.25 $32.37 $0.00 $0.00 $32.37 $41.25
YEARS TO FIRST CALL
(e.g., 2.0, 2.5) 5.0 7 $41.25 $31.08 $0.00 $0.00 $31.08 $41.25 $41.25 $31.08 $0.00 $0.00 $31.08 $41.25
8 $41.25 $29.85 $0.00 $0.00 $29.85 $41.25 $41.25 $29.85 $0.00 $0.00 $29.85 $41.25
9 $41.25 $28.67 $0.00 $0.00 $28.67 $41.25 $41.25 $28.67 $0.00 $0.00 $28.67 $41.25
OUTPUT 10 $41.25 $27.53 $0.00 $0.00 $27.53 $41.25 $41.25 $27.53 $1,050.00 $700.87 $728.41 $1,091.25
YIELD TO CALL 12.71% 11 $41.25 $26.44 $0.00 $0.00 $26.44 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
**CURRENT YIELD 9.53% 12 $41.25 $25.40 $0.00 $0.00 $25.40 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
**CAPITAL GAINS YIELD 3.18% 13 $41.25 $24.39 $0.00 $0.00 $24.39 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
YIELD TO MATURITY 10.00% 14 $41.25 $23.42 $0.00 $0.00 $23.42 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
**CURRENT YIELD 9.53% 15 $41.25 $22.50 $0.00 $0.00 $22.50 $41.25 $0.00 $22.50 $0.00 $0.00 $22.50 $0.00
**CAPITAL GAINS YIELD 0.47% 16 $41.25 $21.60 $0.00 $0.00 $21.60 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
17 $41.25 $20.75 $0.00 $0.00 $20.75 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
EFFECTIVE ANNUAL
RATE #NAME? 18 $41.25 $19.93 $0.00 $0.00 $19.93 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
19 $41.25 $19.14 $0.00 $0.00 $19.14 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
20 $41.25 $18.38 $0.00 $0.00 $18.38 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
21 $41.25 $17.65 $0.00 $0.00 $17.65 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
22 $41.25 $16.95 $0.00 $0.00 $16.95 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
23 $41.25 $16.28 $0.00 $0.00 $16.28 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
24 $41.25 $15.64 $0.00 $0.00 $15.64 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
25 $41.25 $15.02 $0.00 $0.00 $15.02 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
26 $41.25 $14.42 $0.00 $0.00 $14.42 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
27 $41.25 $13.85 $0.00 $0.00 $13.85 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
28 $41.25 $13.30 $0.00 $0.00 $13.30 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
29 $41.25 $12.77 $0.00 $0.00 $12.77 $41.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
30 $41.25 $12.27 $1,000.00 $297.41 $309.67 $1,041.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
31 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
32 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
33 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
34 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
35 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
36 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
37 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
38 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
40 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
41 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
42 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
43 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
44 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
45 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
46 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
47 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
48 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
49 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NPV = IRR = NPV = IRR =
$1,000.00 10.00% $1,055.87 12.71%