Michael Keith

asked on

# 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

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

SOLUTION

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ASKER

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.

ASKER

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.

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