Buy custom bond valuation
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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 525 |
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If the calculated price turns out to be too low compared to the observed price, lower the rate you are using and try again. Just keep guessing at the rate until you find the rate that makes the calculated price equal to the observed price. Excel's "goal seek" automates this guessing procedure. Then use goal seek to find the rate that produces a bond price of $988...
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Excel's "goal seek" automates this guessing procedure. Then use goal seek to find the rate that produces a bond price of $988.
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General points of the essay
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