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How to calculate bond price in Excel?

This article is talking about solutions of calculating the price of zero coupon bond, the price of an annual coupon bond, and the price of a semi-annual coupon bond in Excel.

Calculate price of a zero coupon bond in Excel

Calculate price of an annual coupon bond in Excel

Calculate price of a semi-annual coupon bond in Excel

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Calculate price of a zero coupon bond in Excel

For example there is 10-years bond, its face value is $1000, and the interest rate is 5.00%. Before the maturity date, the bondholder cannot get any coupon as below screenshot shown. You can calculate the price of this zero coupon bond as follows:

Select the cell you will place the calculated result at, type the formula =PV(B4,B3,0,B2) into it, and press the Enter key. See screenshot:

Note: In above formula, B4 is the interest rate, B3 is the maturity year, 0 means no coupon, B2 is the face value, and you can change them as you need.


Calculate price of an annual coupon bond in Excel

Let’s say there is a annul coupon bond, by which bondholders can get a coupon every year as below screenshot shown. You can calculate the price of this annual coupon bond as follows:

Select the cell you will place the calculated result at, type the formula =PV(B11,B12,(B10*B13),B10), and press the Enter key. See screenshot:
 

Note: In above formula, B11 is the interest rate, B12 is the maturity year, B10 is the face value, B10*B13 is the coupon you will get every year, and you can change them as you need.


Calculate price of a semi-annual coupon bond in Excel

Sometimes, bondholders can get coupons twice in a year from a bond. In this condition, you can calculate the price of the semi-annual coupon bond as follows:

Select the cell you will place the calculated price at, type the formula =PV(B20/2,B22,B19*B23/2,B19), and press the Enter key.

Note: In above formula, B20 is the annual interest rate, B22 is the number of actual periods, B19*B23/2 gets the coupon, B19 is the face value, and you can change them as you need.


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