Results 1 to 7 of 7
  1. #1
    Join Date
    Apr 2006
    Posts
    47

    Unanswered: enter a math formula in excel

    I have a formula from a book, i have tried over and over to make it work in excel but cant. there is no errata for the book, here is the formula
    ( i use pow for when something is to the power of )

    100/1.08 pow 63/360 * (
    .09 * (1-1/1.08 pow 5) / 1 - 1/1.08
    +1/1.08pow5

    this should equal 111.4811

  2. #2
    Join Date
    Mar 2006
    Posts
    163
    There is an error in that formula - there's a missing closing parentheses.

    Also the order of precedence is unclear.

    ie what order should the calculations be done in?

  3. #3
    Join Date
    Apr 2006
    Posts
    47
    order


    1st 100/(1.08 ^ (63/360)) *

    2nd calc this (.09 * (1- (1/(1.08^5) / (1 - 1/1.08))

    3rd add this + 1/(1.08^5))

    then mult 1st calc to 3rd

  4. #4
    Join Date
    Mar 2006
    Posts
    163
    Here's the result's I got.

    100/(1.08 ^ (63/360))=98.66221

    (0.09*(1-(1/(1.08^5)/(1-1/1.08))))=-0.73691

    1/(1.08^5) = 0.680583

    I can't see how the result you indicate can be arrived at from these results.

  5. #5
    Join Date
    Apr 2006
    Posts
    47
    thats 2 of us heres my ans:

    100/(1.08 ^ (63/360))=98.66221

    (1-(1/(1.08^5)/(1-1/1.08) = 4.31212684
    (1/(1.08^5)= .680583

    .09 * 4.31212684 + .680583 = 1.068675

    98.66221 * 1.068675 = 105.4378

  6. #6
    Join Date
    Mar 2006
    Posts
    163
    Is this some kind of trigonometry thing?

  7. #7
    Join Date
    Oct 2003
    Posts
    311
    calculating bond yield

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •