topic 4 Bonds formula Flashcards
1
Q
how to calculate an zero interests bond
A
pv=fv/(1+i)*n
2
Q
how to calculate present value of coupon bonds
A
pv=c/(1+r)1+c/(1+r)2+…..
3
Q
bond yields
A
pv=c/(1+r)1+c/(1+r)2+..
FV+c/(1+r)*N
4
Q
yield to call
A
PV = C1/(1+ r)1 + C2/(1+ r)2 + … + Call price + CT/
(1+ r)*T