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Hi, the correct answer should be 1000 but I am not getting this answer. Could someone help me to see where the mistake is? Thanks.
Hi, the correct answer should be 1000 but I am not getting this answer. Could someone help me to see where the mistake is? Thanks.
Why should the answer be 1000? Explain the manual calculation that leads you to this conclusion, please.
Ali
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Thanks for your response.
If you key this into chatgpt it will say the answer is 1000.
settlement date = 11 july 2024, maturity date = 10 july 2028, coupon = 4%, yield = 4%, redemption value = 1000, frequency of coupon = 1. Calculate price of bond using excel.
But when I paste it into excel, I don't get 1000 (pls see my previous attachment)
Chatgpt is correct because if coupon = yield, bond price = redemption value = 1000
And you believe ChatGPT?
OK - here's how the function works: https://support.microsoft.com/en-gb/...8-17ea02c21b0a
Chatgpt is correct because it is in accordance with finance theory. Thanks for your response.
Then you'll need to use your own superior calculation instead of Excel's PRICE function.
It does seem like there is a bug in Excel's PRICE function! If coupon rate = YTM rate, by right, Bond Price = Redemption Value!
DCF proves Excel's PRICE function is incorrect.
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