## Publications # Bonds A Step by Step Analysis with Excel

Type
Cost
Paid
Published
2014

Bonds. A Step by Step Analysis with Excel is a book that aims to help investors make a financial analysis of risk-return relation using spreadsheets in a step-by-step procedure. With the incorporation of financial mathematics, this book teaches you how to price a bond and calculate the most popular measure of return, while describing a step-by-step procedure to design the cash flow in a spreadsheet. This book also describes the mechanics to calculate the duration, modified duration and convexity for real bonds using spreadsheets as a measure of price volatility.

#### Guillermo Dumrauf

BONDS. A STEP BY STEP ANALYSIS WITH EXCEL CONTENTS

CHAPTER ONE
•Designing the cash flow for a particular investment amount
•Pricing a bond and calculating its yield to maturity, using an Excel spreadsheet.
•Calculating the total return for an investment horizon.
•Performing a sensitivity analysis of price, yield and total return.

CHAPTER TWO
•Understanding the price-yield relationship of an option-free bond.
•Calculating the duration, modified duration and convexity for real bonds using Excel spreadsheets.
•Understanding why duration is a measure of a bond´s price sensitivity to yield changes.
•Understanding the limitations of the duration as a measure of price volatility and how the duration estimation can be adjusted for a bond´s convexity.

CHAPTER THREE
•Understanding that the IRR is not always a good measure of the annual return.
•Identifying situations in which the yield requires an additional interpretation.
•Calculating a portfolio return, when there are deposits and withdrawals in a brokerage account.

CHAPTER FOUR
•Calculating the different measures of a portfolio return, with and without external cash flows.