HTTP vs HTTPS The significance of S: Http or the hypertext transfer protocol is something we use when we access the internet. Though we seldom notice it if at all, it plays a very essential role.
This is because the interest rate risk (risk of missing out on higher interest rates) decreases the closer bonds get to their maturity dates. With that, let's use the Bond Value Calculator to calculate the price of a bond given its face value, coupon rate, market rate, and years-to-maturity. Next enter the current market rate and the number of years to maturity, then click the Calculate Bond Valuation button.
Calculate the bond price using the inputs T, PMT, PAR, and the Discount Rate / Period in cell B22. Specifically, enter =-PV(B22,T,PMT,PAR) in cell B24 and copy the cell B24 to the range C24:U24. 6.Current Bond Price. Calculate the bond price using the original inputs. Copy the formula in cell B24 to cell B25. Then change the yield to maturity from B23 to r. so that the formula reads =-PV(r.,T,PMT,PAR) and copy the cell B25 to the range C25:U25.