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MS Excel Exercises

How long would it take you to obtain $1,000,000 if you saved $2,500 quarterly and were able to obtain a 7% rate of return per year?

Calculate the current yield on a bond that has the following characteristics:
(a) NPER: 30, (B) Price--$1,125, (c) Coupon Rate: 6%, (d) Market Rate of Interest: 4%.
Calculate the Yield to Maturity on a bond that has the following characteristics:
(a) NPER: 25, Coupon Rate: 4%, and Price--$800.
Calculate the current market price of a bond that has the following characteristics:
(a) NPER: 23, (b) Yield to Maturity: 5%, and (c) Coupon Rate: 6%.

Solution Preview

Please refer attached file for better clarity of formulas in MS excel.

How long would it take you to obtain a $1,000,000 if you saved $2,500 quarterly and were able to obtain a 7% rate of return per year?

Rate=7%/4=1.75% Per quarter
PMT=-$2,500
NPER=?
FV=$1,000,000
Number of periods=NPER=119.8619454 =NPER(C3,C4,,C6)
(We have used the NPER function in MS Excel to get this value)
Time required=29.96548636 Years

Calculate the current yield on a bond that has the following characteristics: (a) ...

Solution Summary

Solutions describe the steps to find the following by using built in functions in MS Excel :
a) Time period
b) YTM
c) Current yield
d) Market price

$2.19