Actually John, the summation is not a killer. The price formula only has
three terms on the right hand side:

1. the redemption term
2. the summation term
3. the A/E term

the redemption term has no rate in it so it can be subtracted over to the
left side.
rate can then be factored out of the summation and A/E terms and the
factored terms can be divided over to the left side, leaving only rate on the
right
--
Gary''s Student - gsnu200810


"John C" wrote:

awwww, c'mon!
That summation is a killer.
--
** John C **

"Sheeloo" wrote:

John,

Looked at the formula and would like to withdraw my offer of solving it for
RATE... :-)

Seriously, I will see whether this can be done, subject to availability of
time...

Regards,

"John C" wrote:

The formula for PRICE is actually in the Excel Help. However, I'd like to see
you do the reverse algebra on it (not being sarcastic, I looked at it, and
just too busy to wrap my mind around it, would love to see the solve for rate
version).
--
** John C **

"Sheeloo" wrote:

When you have the FORMULA and its result but don't know one of the variables
then GOAL SEEK will provide you the answer...

If you know the calculation behind PRICE formula of Excel (how you will do
it on paper) then we can give you the formula to way to calculate Coupon
given the result.

"ingmar" wrote:

=PRICE(Settlement Date,Maturity Date,Coupon,YTM,100,4,4)
This is standard excel price function
I know price and all inputs BUT coupon
need to find a way to calculate the coupon based on all other inputs
assume there must be a way to do it - excel does not seem to have a function
for that

"Gary''s Student" wrote:

Post your PRICE formula and we will help with the algebra to invert it.
--
Gary''s Student - gsnu200810


"ingmar" wrote:

OK - but is there a way to use a function to avoid the goal seek?

"Sheeloo" wrote:

Use Tools|Goal Seek

For details on HOW TO visit http://www.homeandlearn.co.uk/ME/mes8p4.html

"ingmar" wrote:

Wondering if there is a way to calculate coupon rate of a bond based on YTM,
maturity, settlement date, and bond's price
essentially I am trying to back solve for the coupon rate based on all
inputs of the PRICE formula (i.e. all are known except RATE in the PRICE
formula)