Saturday, 31 March 2012

Bond Price Formula

From:
http://www.investopedia.com/university/advancedbond/advancedbond2.asp#axzz1qih6H6NX

Here is the formula for calculating a bond's price, which uses the basic present value (PV) formula:




C = coupon payment
n = number of payments
i = interest rate, or required yield
M = value at maturity, or par value

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