Bonds

Bond Price of Forwards -

Short Term Market Borrowing Interest Rate (Bond is bought by taking loan from the market)	5%
Face Value (FV)	100
Coupon Rate	7.00%
Settlement Date (The date bond is bought from the market)	10-Jul-10
Frequency (per year) – Semi-Annual	2
Previous Coupon Date	24-Feb-10
Price of Bond (Current / Spot Price)	98.35
Accrued Interest = FV * Coupon % *YEARFRAC(Previous Coupon, Settlement Date, Basis=4)	2.64
Dirty Price (Outflow, when bond was bought by borrowing money from the market @ 5%)	100.99
Next Coupon Date = EDATE(Previous coupon Date,6 - it is semi-annual)	24-Aug-10
Forward Date (The date bond is going to be sold / 3 Month forward date)	10-Oct-10
Coupon on 24-Aug-2010 (Inflow)	3.50
Accrued Interest [Inflow - From 24 Aug (when coupon is paid) to 10 Oct (is the forward contract date)]	0.89
Borrowing Cost [Outflow - Borrowed Dirty price from market @ 5%]	1.26
Net Outflow [Outflow - This is the forward price to be quoted today for selling the bond (Finding bond price)]	97.86