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Bond Value

The document contains calculations for valuing a bond with a face value of 100, coupon rate of 10%, yield of 11%, paid semi-annually over 10 periods. It shows the present value and cash flows for the bond discounted at the yield rate over the periods until maturity when the full face value is paid. Additional examples are shown calculating bond values at different frequencies such as quarterly and annual payments.

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Phuntru Phi
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80 views12 pages

Bond Value

The document contains calculations for valuing a bond with a face value of 100, coupon rate of 10%, yield of 11%, paid semi-annually over 10 periods. It shows the present value and cash flows for the bond discounted at the yield rate over the periods until maturity when the full face value is paid. Additional examples are shown calculating bond values at different frequencies such as quarterly and annual payments.

Uploaded by

Phuntru Phi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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face value 100

coupon 10% CF = 5 5
Yield 11% r = 11/2 5.5
n = 10 10

Semi annual cf/(1+r/2)^n annually

Time Coupon Yield PV Time Coupon Yield


0.5 5 11% 4.739336 ₹ -64.66 1 10 11%
1 5 11% 4.492262 2 10 11%
1.5 5 11% 4.258068 3 10 11%
2 5 11% 4.036084 4 10 11%
2.5 5 11% 3.825672 5 110 11%
3 5 11% 3.626229 Bond value
3.5 5 11% 3.437184
4 5 11% 3.257994
4.5 5 11% 3.088146
5 105 11% 61.47021
Bond Value 96.23119
quaterly

PV Time Coupon Yield PV


9.009009 0.25 2.5 11% 2.369668
8.116224 0.5 2.5 11% 2.246131
7.311914 0.75 2.5 11% 2.129034
6.58731 1 2.5 11% 2.018042
65.27965 1.25 2.5 11% 1.912836
96.3041 1.75 2.5 11% 1.718592
2 2.5 11% 1.628997
2.25 2.5 11% 1.544073
2.5 2.5 11% 1.463576
2.75 2.5 11% 1.387276
3 2.5 11% 1.314954
3.25 2.5 11% 1.246402
3.75 2.5 11% 1.119833
4 2.5 11% 1.061453
4.25 2.5 11% 1.006116
4.5 2.5 11% 0.953665
4.75 2.5 11% 0.903948
5 100.25 11% 34.35858
60.38317
face value 100
coupon rat 10%
yield 11%

semi
fv 100 coupon 5
coupon rat 5%
yield 11%
time yield coupon PV
0.5 11% 5 4.739336
1 11% 5 4.492262
1.5 11% 5 4.258068
2 11% 5 4.036084
2.5 11% 5 3.825672
3 11% 5 3.626229
3.5 11% 5 3.437184
4 11% 5 3.257994
4.5 11% 5 3.088146
5 11% 105 61.47021
years to Mat 15 1/3/2015
Coupon rate 10% 1/3/2000
Annual pmt $100
par value = FV $1000
Required return r 12%
Par value coupon bond 1 bond 2 bond 3 settlement dmaturity date
100 15% 0 -100 -99 -100 1/7/2019 1/7/2021
0.5 7.5 7.5 7.5
1 7.5 7.5 7.5
1.5 7.5 7.5 7.5
2 107.5 107.5 108.5

1 IRR
maturity date
Coupon Rate 3.00%
Yield 2.80% 280
N 10
Remaning Coupons 20 0 300
Coupons payment frequency 2
coupon 15
FV 1000
Disc. Rate 0.014

PV

20 ₹ 1,017.34
19 Chart Ti
18
₹1,200.00
17
16 ₹1,000.00
15
14 ₹800.00
13
12 ₹600.00
11
10 ₹400.00

9
₹200.00
8
7
₹0.00
6 0 5 10
5
4
3
2
1
0
Chart Title

5 10 15 20 25
coupon rate 10.44% 10440
Yield 5.19%

5189
Rate 12%
frequency 2

effective rate 0.1236 12.36%

Semi annually 2 0.1236 12.36%


Quaterly 4 0.125509 12.55%
Monthly 12 0.126825 12.68%
Daily 365 0.127475 12.74%
Investment CF0 -100
Intrest Rate I 5%
Period N 3

FV ₹ 115.76
₹ 115.76

FV 560
Period 2
Rate 10%

PV ₹ -462.81
$462.81
N 10
PV 645
FV 1000

I 4%

N 180 15
FV 1,200,000
PMT 3605
PV
I 3%

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