Calculate Bond Price
Bond valuation includes calculating the present value of the bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also known as its face value or par value.
Bond valuation includes calculating the present value of the bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also known as its face value or par value.
What does this means to you? Well, all these factors are required to price a bond properly. The difference between the settlement date and the maturity date is the length of time for which you will be holding the bond. The longer this time period, the lower the bond's price will be. The market yield is compared to the coupon's annual rate, and the larger the difference, the lower the bond's price will be. And the redemption value is compared to par value, and the larger the difference, the lower the bond's price will be.
The result is too small.
Try again.