Microsoft Office Tutorials and References
In Depth Information
Using the Euro Currency Tools add-in
This function takes the arguments settlement , maturity , coupon , yield , frequency , and basis .
For argument definitions, see Table 16-3.
For example, suppose a bond has a settlement date of January 1, 2010; has a maturity
date of December 31, 2015; has a semiannual coupon rate of 8.5 percent; has a yield of 9.5
percent; and uses the default 30/360 basis. The resulting formula, =DURATION("1/1/10",
"12/31/15", 0.085, 0.095, 2, 0), returns a duration of 4.7871.
The MDURATION function calculates the annual modified duration for a security with
interest payments made on a periodic basis, adjusted for market yield per number of
coupon payments per year. This function takes the arguments settlement , maturity , coupon ,
yield , frequency , and basis . Using the values from the DURATION formula, the modified
duration formula is =MDURATION("1/1/10", "12/31/15", 0.085, 0.095, 2, 0) and returns a
value of 4.57.
Using the Euro Currency Tools add-in
You might find that the Euro Currency Tools add-in can make life simpler if you routinely
work with various European currencies. To install this add-in, click the File tab, click Options,
select the Add-Ins category, and click the Go button to display the Add-Ins dialog box.
Select the Euro Currency Tools check box, and then click OK.
To see what this add-in provides, click the Formulas tab on the ribbon. A Solutions group is
added on the right side of the Formulas tab and includes the Euro Conversion command,
the Euro Formatting command, and a drop-down menu offering an option for converting
to or from euros to each individual European currency.
Clicking the Euro Formatting button applies a standard currency number format with a
Euro symbol instead of a dollar sign. You can select any conversion option listed in the
drop-down list and see what the value in the selected cell would be if converted to the
selected currency. The result, which you can also select and copy, appears in a box to the
right of the Euro Conversion button that does not appear until you select a conversion
option from the list.
If you need to convert the values in a worksheet full of cells (or just one cell) from one
European Union member currency to another, use the Euro Conversion button, which
displays the Euro Conversion dialog box. Options in this dialog box work as follows:
The Source Range box, when selected, lets you drag to select the range you want to
convert. You can select a matching range for the results using the Destination Range
box, but you need to select only one cell, which becomes the upper-left corner of the
resulting range.
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