Help with Functions

  • Thread starter Thread starter Brian
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Brian

Please advise where I could get help using functions in
Excel. I have this problem below and I don't know which
function I should use. Also the function features seem
difficult to use.

Any suggested books, websites, etc. dealing with the
subject would be appreciated.

Thanks!

PV/Yield and Cash Flow Patterns 1. A four-year bond-type
cash flow pays $700.00 at the end of years one through
three, and $10,700.00 at the end of year four. A four-
year zero coupon cash flow pays $13,107.96 at the end of
year four. Both have a present value of $10,000.00 at a
yield of 7.00%. If yield increases to 7.17%, by what
amount will the PV of the bond-type cash flow exceed that
of the zero coupon cash flow?
 
Brian wrote..
Please advise where I could get help using functions in
Excel. I have this problem below and I don't know which
function I should use. Also the function features seem
difficult to use.

Any suggested books, websites, etc. dealing with the
subject would be appreciated.

Thanks!

PV/Yield and Cash Flow Patterns 1. A four-year bond-type
cash flow pays $700.00 at the end of years one through
three, and $10,700.00 at the end of year four. A four-
year zero coupon cash flow pays $13,107.96 at the end of
year four. Both have a present value of $10,000.00 at a
yield of 7.00%. If yield increases to 7.17%, by what
amount will the PV of the bond-type cash flow exceed that
of the zero coupon cash flow?
Click to expand...

Brian,

This looks like homework.

Why not have four columns to represent each year.
Year 1 - A
Year 2 - B
Year 3 - C
Year 4 - D

Put your cash flows in the appropriate column.

Then just do an NPV analysis.

Here I'll do the easy one for you.

A1, B1, C1=700
D1= 10,700

A2=NPV(7.17%, A1:D1)

Do something similar for your zero coupon bond. Compare the difference, and
you're done.

Best regards,
Kevin

p.s.: I expect an apple on my desk tomorrow.
 
Hi Brian!

Re: Any suggested books, websites, etc. dealing with the subject would
be appreciated

For examples of the use of many functions see:
http://homepage.ntlworld.com/noneley/

As for books Excel 2003 Formulas gives a good coverage on the Excel
financial functions.


--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 
Thanks Kevin...

You might not believe this, but I was actually doing
financial training at my work. I got my bachelors in
business four years ago, but they don't teach you
enough. Now my bank is requiring us to take all of these
classes again. I finished tvm and now I'm doing the
yield class, which is all online. It's through a company
called ZooLogic.

Thanks again for your help.
 
Hello Brian
I recommend:
Excel Formulas 2002 by John Walkenbach. It is excellent. A tad pricy
at $40DUS by more than worth it. It has an excellent CD that has a
lot of add on financial forumlas I suspect you would find useful.

Good luck on your training

Regards
John
Southern California.
 
Brian wrote ...
Thanks Kevin...

You might not believe this, but I was actually doing
financial training at my work. I got my bachelors in
business four years ago, but they don't teach you
enough. Now my bank is requiring us to take all of these
classes again. I finished tvm and now I'm doing the
yield class, which is all online. It's through a company
called ZooLogic.
Click to expand...

My pleasure.

Best regards,
Kevin
 
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