# [EXCEL] Realized yield: Four years ago, Lisa Stills bought six-year, 5.5 percent coupon bonds issued by the Fairways Corp. for \$947.68. If she sells these bonds at the current price of \$894.52, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. Please use Excel

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[EXCEL] Realized yield: Four years ago, Lisa Stills bought six-year, 5.5 percent coupon bonds issued by the Fairways Corp. for \$947.68. If she sells these bonds at the current price of \$894.52, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. Please use Excel

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Step 1

The question is based on the concept to calculate yield till holding period from a bond investment, using following function in excel,

Pv = Buying price of the bond = \$ 947.68

nper = number of payment = 4 ( left for coupon payment)

Pmt = Periodic payment (5.5% annual) = 5%*\$1000= \$50

Fv= Selling price of the b...

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