How to use goal seek in excel (windows vista) to find YTM to make NPV zero?

Question

I am trying to do an assignment in Excel for my financing class, and I don't know how to use the Excel function. I am looking for YTM guesses to make the NPV equal zero. The assignment tells me to use the "goal seek" function and it will automatically find the right input. Could anyone tell me how to use this function?? I don't even know where to find it on the menu or anything. Thanks!!!

Answer 1

Favorite Answer

Select the NPV formula cell

The NPV formula should have YTM as one of its factors within the formula.

From the Excel menu bar, click on Data

Locate the Data Tools panel and the What if Analysis item. From the What if Analysis menu, select Goal Seek.

Set Cell: should be the cell that calculates NPV

To Value: 0

By changing cell: cell that has YTM

Source(s): Goal Seek video http://www.youtube.com/watch?v=7QIBvMPC9vM YTM Video http://www.youtube.com/watch?v=NV0S8pKvje8

Answer 2

http://www.teachexcel.com/tutorials/dataanalysis/g...

check that out on how to use the goal seek function. also, they have their own forum if you have any trouble