Question : Bond Value Calculation

Per attached spreadsheet, I'm trying to calcuate a "bond value".

The data for scenario 1 has been entered into cells A1:B5.   I just don't know how to replicate the formula in cell B7.

Any ideas how I derive at the $967.26 or $883.64 (problem 1 and problem 2, respectively)?    

EEH

Answer : Bond Value Calculation

2 Steps

Present value the principal = $ 1,000 / ( 1 + 16% ) ^ 5 = 476.11

The coupon stream is like an annuity, right?  So let's use the annuity function to get the present value of the coupons.

Present value annuity = $ 150 * [ ( 1 - 1 / ( 1 + 16% ) ^ 5 ) / 16% ] = 491.14

Add the two components to get your bonds present value = $ 967.26