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Present Value Formula in Excel 2010 to a specific date

At work we have a specific software that produces analysis for bond deals we work on.  I need to replicate one of the reports in excel that relates to present value of cash flow savings.  The cash flows are semi-annual (3/1 & 9/1 beginning 9/1/2017)  The challenge is I need to be able to PV it back to 6/8/2017.   This means the  cash flow gets PV'd back to June 8, 2017 on a semi-annual cash flow basis.   Also note that the cash flow is related to a municipal bond so it would be on a 30/360 basis instead of act/365.  

Below are the cash flows I am trying to PV along with an excel file that shows the results of the PV from the software I am trying to match and my attempt to write a formula that matches the software result.    As you can see I can come within $144.86 but need to match perfectly.  

PV Date June 8, 2017

Date              Cash Flow
9/1/2017      580,230.17
3/1/2018      34,867.25
9/1/2018      (132.75)
3/1/2019      30,892.00
9/1/2019      5,892.00
3/1/2020      26,561.25
9/1/2020      6,561.25
3/1/2021      21,981.25
9/1/2021      11,981.25
3/1/2022      17,045.75
9/1/2022      17,045.75
3/1/2023      11,754.75
9/1/2023      21,754.75
3/1/2024      6,108.25
9/1/2024      31,108.25
U--Deal-Type-Folders-Urban-Renewal_.xlsx
0
Michael Keith
Asked:
Michael Keith
2 Solutions
 
Ryan ChongCommented:
the difference could possibly caused by the rounding issue in the formula.

are you able to get the calculation formula from the specific software you're using?
without the clear formula, we only can trial and error in your Excel
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abbas abdullaCommented:
Hi Michael,
Use the Goal Seek Feature in Excel. See the attached pictures. In return This feature find out that to get precise results you should change PV value to be 2.47876051225548%

Br,
Abbas Abdulla
Step1-Goal-Seek.PNG
Goal-Seek-Result.PNG
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Rob HensonFinance AnalystCommented:
Working backwards on the first result:

Savings:   580,230.17
PV Calc:   576,963.86

Effective rate of 1.005661204%   (580230.17 / 576,963.86)
Converting to a percentage is 0.566% which is about 22.97% of PV Rate. On that basis 22.97% of 360 is 82.73 days.

The DAYS360 function gives 83 days. 83/360 gives 0.230556 which as a percentage of the PV rate gives 0.56799%, ie marginally higher than the 0.566% required.

Based on that I agree with Ryan that it is in the roundings.
1
 
Michael KeithAuthor Commented:
Thanks for your help.  I have reached out to see if I can get the formula and you are likely right that it must have to do with rounding somewhere in the formulas.   Thanks.
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Michael KeithAuthor Commented:
Thanks for taking a look at this and at least giving me a peer review of my formula approach to the problem.  I appreciate the help from you both.
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