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.
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
What 7 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
discount
the amount by which the market price of a bond is lower than its principal amount due at 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