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FinanceQ&A Library[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 ExcelQuestion

Asked Mar 7, 2020

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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**

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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