Abstract
This paper presents a new assignment that teaches students how to create user-defined functions in Visual Basic for Application (VBA) to model bond immunization outcomes. Students learn how to create five user defmed functions that calculate bond price; duration; the number of bonds required for immunization; the future value of semi-annual coupon payments reinvested at six-month Treasury rates; and the "street" price of a bond at duration using the daily compounding method for accrued interest between bond payments. This assignment helps students understand the effects of monetary policy on bond immunization strategies and strengthens Excel skills, which is desirable to employers.
Recommended Citation
(2026)
"Modeling Bond Immunization Outcomes with User Defined Functions,"
Journal of Economics and Finance Education: Vol. 20:
Iss.
1, Article 3.
Available at:
https://scholarship.rollins.edu/jefe/vol20/iss1/3
