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))
For more math formulas, check out our Formula Dossier
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))
For more math formulas, check out our Formula Dossier
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
Bond Price Formulas Calculator Video
An Automated Online Math Tutor serving 8.1 million parents and students in 235 countries and territories.
