Coupon bond valuation calculator

    • [PDF File]Bond Mathematics & Valuation - Suite LLC

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      Bond Mathematics & Valuation Price Yield Relationship Yield as a Discount Rate The price of a bond is the present value of the bond’s cash flows. The bond’s cash flows consist of coupons paid periodically and principal repaid at maturity. The present value of each cash flow is calculated

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    • [PDF File]Basic convertible bonds calculations

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      Duration and coupon yFor non-convertible bonds, the duration decreases as their coupon increases. This is because higher coupon bonds deliver more cash flows near the start of the bond’s life. yWith convertible feature, the higher coupon rate may lead to lower propensity to convert. The CB then has a longer life, so this leads to higher duration.

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    • [PDF File]Bond Calculator

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      Bond Calculator Bond calculator is designed to calculate analytical parameters used in assessment of bonds. The tool allows calculating prices, accrued coupon interest, various types of bond yields, duration, as well as modified duration, curve, PVBP, making it possible to analyze volatility of the debt market instruments and assess how

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    • [PDF File]The Value of a Bond with Default Probability

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      The Value of a Bond with Default Probability Stefan Hollos QuantWolf.com Exstrom Laboratories LLC, Longmont Colorado, USA stefan@exstrom.com Feb 8, 2010 Let X represent the present value of a bond’s cash ow stream. When you have a default probability then X becomes a random variable with a range

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    • [PDF File]Bond Pricing Formula - Final

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      Bond Exchange of South Africa Page 6 of 24 Bond Pricing Formula 24 August 2005 3 TIMING AND INTERMEDIATE RESULTS The first step is to identify the position of S with respect to the bond's coupon …

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    • [PDF File]The Pricing of Bonds between Coupon Payments: From …

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      spreadsheet solutions to bond valuation and consists of the sentence, “This (spreadsheet) function is essential if a bond is being evaluated between coupon payment dates.” Bodie et al. (2005) also rely solely on the use of pre-programmed spreadsheet functions to determine the transaction price of a bond between coupon payments.

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    • [PDF File]CHAPTER 7 INTEREST RATES AND BOND VALUATION

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      The coupon rate is fixed and simply determines what the bond’s coupon payments will be. The required return is what investors actually demand on the issue, and it will fluctuate through time. The coupon rate and required return are equal only if the bond sells exactly at par. 8.

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    • [PDF File]Bond Worksheet on BAII Plus Calculator

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      The bond worksheet on a BAII Plus calculator can compute the bond price, the yield to maturity or call, and accrued interest. To access the bond worksheet, press [2nd] [BOND]. Use the [↓] or [↑] keys to access bond variables. To reset the Bond worksheet to default values, press [2nd] [CLR WORK].

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    • [PDF File]CHAPTER 33 VALUING BONDS

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      At the extreme, if the bond is a 'zero-coupon' bond, the only cash flow is the face value at maturity, and the present value is likely to vary much more as a function of interest rates. Figure 33.2 illustrates the percentage changes in bond prices for six thirty-year bonds with coupon rates ranging from 0% to 10% for a range of interest rates.

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    • [PDF File]CHAPTER 8 INTEREST RATES AND BOND VALUATION

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      INTEREST RATES AND BOND VALUATION Solutions to Questions and Problems 1. The price of a pure discount (zero coupon) bond is the present value of the par value. Remember, even though there are no coupon payments, the periods are semiannual to stay consistent with coupon bond payments. So, the price of the bond for each YTM is: a.

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