How does the Bond Price Formulas Calculator work?
Free Bond Price Formulas Calculator - Given a face value, coupon percent, yield percent, term, and redemption value, this calculates the price of a bond using the four price formulas for bonds
1) Basic
2) Premium/Discount
3) Base
4) Makeham
This calculator has 5 inputs.
1) Basic
2) Premium/Discount
3) Base
4) Makeham
This calculator has 5 inputs.
What 4 formulas are used for the Bond Price Formulas Calculator?
Basic Formula price = Face * Coupon % * Present Value Coupons + R/Discount Factor
Premium/Discount price = R + (Face * Coupon % - R * yield) * Present Value of Coupons
Base price = (Face * Coupon % / yield) + (R - (Face * Coupon % / yield))/(1 + yield)term
Makeham price = (R / ((1+yield)term) + ((Face * Coupon%)/(Yield * R)) * (R - R/((1+yield)term))
Premium/Discount price = R + (Face * Coupon % - R * yield) * Present Value of Coupons
Base price = (Face * Coupon % / yield) + (R - (Face * Coupon % / yield))/(1 + yield)term
Makeham price = (R / ((1+yield)term) + ((Face * Coupon%)/(Yield * R)) * (R - R/((1+yield)term))
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What 10 concepts are covered in the Bond Price Formulas Calculator?
- bond
- a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
- bond price formulas
- coupon
- the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
- discount
- the amount by which the market price of a bond is lower than its principal amount due at maturity
- face value
- the price that the issuer pays at the time of maturity
- makehams formula
- an actuarial formula expressing the present value of a payment stream in terms of its repayments instead of the payments themselves
- premium
- a bond which market value is greater than its face value
- present value
- the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future Value - price
- the amount of money expected, required, or given in payment for something
- redemption value
Bond Price Formulas Calculator Video
