A $5000 bond with a semiannual coupon at 8.5% is redeemable at par value on November 1, 2015. Find the purchase price on July 15, 2013 to yield 7.5%.

This is how you would enter this into Excel

=PRICE(DATE(2013,7,15),DATE(2015,1,1),8.5%,7.5%,100,2)

The inputs of the price function are (settlement, maturity, rate, yld, redemption, frequency)

The settlement is the date of purchase, maturity is the redemption date, rate is the coupon rate, yld is the yield, the redemption is the redemption value per 100 of par value, frequency is the number of coupon payments per year. The settlement and maturity must be entered using the DATE function (DATE(year, month, day)).

The function returns the price per 100 of par value. Since it is a 5000 bond, multiply the price by 50.

The price per 100 is $101.3543

The price of the $5000 bond is $5067.72

Financial calculators often have bond functions with similar inputs, check your manual to see how to enter.