Bond pricing and risk metrics live in a tight cluster of fixed-income functions. `=PRICE(settlement, maturity, coupon, yld, redemption, frequency, basis)` returns the clean price given the current market yield, while `=YIELD(settlement, maturity, rate, pr, redemption, frequency, basis)` inverts that calculation to retrieve yield-to-maturity from a quoted clean price. Accrued interest between coupon dates is computed with `=ACCRINT(issue, first_interest, settlement, rate, par, frequency, basis)` — necessary for settling an ex-coupon trade or stitching coupon dates into a swap schedule. For short-dated US Treasury bills, which are quoted on a discount basis rather than a yield basis, `=TBILLPRICE(settlement, maturity, discount)` and `=TBILLYIELD(settlement, maturity, pr)` provide the matching pair. When only cash flows and price are known and the bond looks annuity-like, `=RATE(N, Coupon, -Price)` recovers an approximate yield-to-maturity by treating the coupons as level annuity payments.
Interest-rate sensitivity has three standard building blocks. `=DURATION(settlement, maturity, coupon, yld, frequency, basis)` returns the Macaulay duration in years — the weighted average time at which the bond's cash flows are received. `=MDURATION(...)` divides Macaulay duration by \((1 + y/f)\), converting it into the modified duration that actually drives price change for a small parallel shift. `=CONVEXITY(settlement, maturity, coupon, yld, frequency, basis)` provides the second-order correction that improves the duration approximation for larger moves. A practical sensitivity measure for traders is DV01 (or PV01), which can be approximated in Excel as the price change from a one-basis-point bump in yield: re-price the bond with `yld + 0.0001`, take the difference, and divide by 10,000 to express it as a dollar change per \$1\) of par.
Equity cost of capital derives from a few canonical formulas. CAPM expresses the required return as \(R_e = R_f + \beta (R_m - R_f)\), where the beta itself can be estimated from a returns series as `=SLOPE(stock_returns, market_returns)`. The Fama–French three-factor extension adds a size premium \(s \cdot SMB\) and a value premium \(v \cdot HML\), making the model \(R_e = R_f + \beta \cdot Mkt + s \cdot SMB + v \cdot HML\). For dividend-paying equities, the Gordon growth model collapses the discount to \(R_e = D_1/P_0 + g\). The firm-wide WACC is the weighted average \(WACC = E/V \cdot R_e + D/V \cdot R_d \cdot (1 - t)\), where \(t\) is the marginal tax rate that shields interest expense.