Application Of A Spreadsheet Model

949 Words Oct 27th, 2015 4 Pages
Introduction to the Purpose
The purpose of any spreadsheet model is to organize and categorize large amounts of information into an easily readable form. We were tasked with obtaining the current U.S. Treasury Yield Curve and then, in a separate task, finding the price and yield to maturity of coupons based on the Annual Percentage Rate (APR) and Effective Annual Rate (EAR). Specifically, our spreadsheet model graphs thirteen different Treasury bills and Treasury bonds with maturity dates spanning from one month to thirty years in the form of a Yield Curve and Forward Rate Curve. We found the price and yield to maturity from a given example, which allowed us to exchange data from the real world and visualize its effects. By doing so, we used Excel methods and calculations that introduced us to financial modeling. The concepts we learned through Excel modeling is a transferrable skill which can be used in a real world context as it is used in this assignment.

Challenges Encountered
At first, we found it difficult to comprehend exactly what the question was asking us to do. The Excel portion of the assignment overwhelmed us with lengthy and complex formulas, although we realized after some experimentation that they provided us with the correct answers. The second question was especially detail-oriented, so we paid careful attention to the numbers we were inputting. When we calculated numbers that seemed out of place, we referred back to the bonds to ensure that we had…
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