Hi, I was just wondering if we are allowed to use the excel function goal seek to calculate the gross redemption yield for paper A? I've looked on the FAQs and it states that we are allowed to use excel to aid with calculations but we must then show our calculations. Would it be the case that we would still need to do trial and error and interpolation and use goal seek to check? Or would we be allowed to state in the word document we have used goal seek to determine the solution? Thanks
Yes - I think you can use Goalseek in Paper A to calculate a yield. It's no different to using Table Mode on a Casio calculator and that has always been allowed. Yes - you must show working. What you cannot do is just do the whole calculation in Excel and then type into your word document 'Yield - 7.54%' with no justification. So (just as if you were using Table Mode), my advice is to make the equation you are evaluating very clear in your script. Then show calculated values either side of the true value, ie 'At 7%, Price = XXX and at 8%, Price = YYY'. You can obtain these values from your spreadsheet. Then say 'Yield = 7.54%'. I can't see a problem with saying you used Goalseek, as it's equivalent to saying 'by interpolation' but not showing any working (which I think was fine in the past).
