# How to Calculate a Forward Bond Price in Excel

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Before you buy a bond as an investment, you want to know how much that bond will be worth when it matures. Knowing how much that potential purchase will be worth 5, 10, 15 or 20 years down the line helps you make an intelligent decision and choose the bond that best meets your needs. If you have Microsoft Excel, you can use the future value (FV) function to calculate that number and help you choose the best investment.

Log on to your computer and open Microsoft Excel. Open a new spreadsheet and save it to your hard drive or network share.

Label your rows as follows: "Amount Invested," "Interest Rate," "Number of Years," and "Future Value." Enter those values in cells A1 through A4.

Enter the purchase price of the bond in cell A1, preceded by a minus sign, i.e. -5000 if you hold a \$5000 bond. Enter the interest rate on the bond in cell A2.

Type the number of years until the bond matures in cell A3. Type a 0 in cell A4 if you will not be adding any more money to the bond. Otherwise type the amount of your annual additions preceded by a minus sign, i.e. -100 if you are adding \$100 a year to the bond. Place your cursor in cell A5.

Enter the FV formula in cell A4. Type "=FV(A2/12,A3,A4,A1)." Press "Enter" to see the results.

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