Spring 2008 Excel for Financial Instruments

Inputs are red, everything else is auto-calculated.

A. Bonds
FV (maturity value) 100,000 Format to Accounting, 0 place, no $
Nominal rate 6.0000% Format to percentage, 4 places
Payment Format to Accounting, 0 place, no $
Number of periods 10 Format to Accounting, 0 place, no $
Present value (sale price) (98,000)
Effective rate Format to percentage, 4 places

Note, there is a "function wizard" for any missing value

We are solving for rate, but you could know rate and solve for PV

Amortization table (no direct inputs except dates)

Date Cash Eff Int Prin. Balance
1/1/2007
12/31/2007
12/31/2008
12/31/2009
12/31/2010
12/31/2011
12/31/2012
12/31/2013
12/31/2014
12/31/2015
12/31/2016

Test for premium and zero interest bonds.

B. Installment Debt (equal level payments of principal and interest)

PV (amount of loan) (18,000) Format to Accounting, 0 place, no $

Nominal annual rate
Nominal rate per period
Periods
FV (rare baloon payment)
Pmt
9.0000% Format to percentage, 4 places
0.7500%
36 Format to Accounting, 0 place, no $
- Format to Accounting, 0 place, no $
Format to Accounting, 0 place, no $

Note, there is a "function wizard" for any missing value

We are solving for paymet, but you could know payment and solve for rate
We will max out amort table at 36 n, but loan can be longer than that

Amortization table (no direct inputs except dates)

Date Cash Eff Int Prin. Balance
1/1/2007
2/1/2007
3/1/2007
4/1/2007
5/1/2007
6/1/2007
7/1/2007
8/1/2007
9/1/2007
 10/1/2007
11/1/2007
12/1/2007
1/1/2008
2/1/2008
3/1/2008
4/1/2008
5/1/2008
6/1/2008
7/1/2008
8/1/2008
9/1/2008
10/1/2008
11/1/2008
12/1/2008
1/1/2009
2/1/2009
3/1/2009
4/1/2009
5/1/2009
6/1/2009
7/1/2009
8/1/2009
9/1/2009
10/1/2009
11/1/2009
12/1/2009
1/1/2010

C. Seriel Bonds
PV 200,000.00
Nominal rate 8.0000%
Principal payments 40,000.00
Periods 5.00
Legal Table

Date Cash Nom Int Prin. Balance

1/1/2007
12/31/2007
12/31/2008
12/31/2009
12/31/2010
12/31/2011

Effective rate 9.0000%

Present value -

Effective Interest Amortization Table

Date Cash Eff. Int Prin. Balance
1/1/2007
12/31/2007
12/31/2008
12/31/2009
12/31/2010
 12/31/2011

12/31/07 entry

Int Exp (effective) -

Bond payable (legal) -
Cash -
Discount (eff - legal int) -