Credit Risk Modeling Using Excel and VBA with DVD

Appendix A2

Solver

The Solver is a tool for finding numerical solutions to various kinds of problems. We can use it to maximize or minimize a function or to set a function to some specified value.

Before we start demonstrating the use of the Solver, we have to ensure that the Solver Add-in is installed. In Excel versions prior to 2007, you just open the Add-In item from the Tools menu. For Excel 2007, you first press the Office button in the upper left of Excel (or press [alt] then [d]), then you choose Excel Options (or press [i]). In Excel 2010, you find the Excel Options menu under the File tab ([alt]+[f]). In both cases you now choose Add-ins on the left side of the dialog box, choose Excel Add-ins from the drop-down menu ([alt]+[a]) on the lower right part of the dialog box and press Go ([alt]+[g]). In any Excel version you should see a picture similar to the following:

Figure A2.1 Installing the Solver Add-in

Here check the box next to the entry ‘Solver’ and confirm by pressing OK.

If the Solver Add-in does not show up in this list, your Excel installation does not contain the Solver Add-in. To install it use the item Detect and Repair from the Help menu to initialize the setup routine. If you believe that the Solver Add-in is installed, you can try to add the reference manually in the Add-In item from the Tools menu by pressing Browse.

The Solver Add-in is typically located ...