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Hello, my question deals with solver and exponents in excel. This may be too
technical but I'll give it a try. I'm using solver for calculating zero rate or "spot rate" bond yields. Instead of using periodic interest rates you have to use continuous compounding. Here is the formula with the numbers inputed and I'll use "Y" as the variable to solve for: 4(EXP-(Y*.5)) +4(EXP-(Y*1))+4(EXP-(Y*1.5))+104(EXP-(Y*2.0)) all of this must equal 104.21 when the equation is solved out. My teacher showed us the answer in class but didn't go over the technique cause he assumed we could figure it out. I'm unsure of how to do it with solver. Any help would be greatly appreciated and I'll be glad to answer any questions. Thanks |
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