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  • Bond Maths 1

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    Indu Chandraker
    16 views7 pages
    1) The document contains information on various financial calculations including present value, future value, annuities, yields, and bond pricing. 2) It shows the calculations of future value, present value, and internal rate of return for different principal amounts, interest rates, and time periods. 3) It also includes examples of determining equivalent yields, annuity present values, monthly savings amounts, bond yields and prices.

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    Original Title

    Bond+Maths+1

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    1) The document contains information on various financial calculations including present value, future value, annuities, yields, and bond pricing. 2) It shows the calculations of future value, present value, and internal rate of return for different principal amounts, interest rates, and time periods. 3) It also includes examples of determining equivalent yields, annuity present values, monthly savings amounts, bond yields and prices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    16 views7 pages

    Bond Maths 1

    Uploaded by

    Indu Chandraker
    1) The document contains information on various financial calculations including present value, future value, annuities, yields, and bond pricing. 2) It shows the calculations of future value, present value, and internal rate of return for different principal amounts, interest rates, and time periods. 3) It also includes examples of determining equivalent yields, annuity present values, monthly savings amounts, bond yields and prices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 7

    PV 1000

    Interest Rate 10%


    No. of Years 5
    FV 1610.51
    FV 1000
    Interest Rate 10%
    No. of Years 5
    PV 620.92

    Annuity 1000
    Interest Rate 12%
    No. of Years 4
    PV -3037.35
    Interest Rate 12%
    Compounding Annual Six monthly Quarterly Monthly
    Amount 1000
    Maturity in yrs 1
    Amount at the end 1,120 1,124 1,126 1,126.83
    Effective Rate 12.00% 12.36% 12.55% 12.68%
    2 4 12

    Annual coupon bond is yielding 8.00%


    What is the bond equivalent yield? 7.85% 3.00%

    SD 12/8/2021
    MD 12/8/2022
    Discount 4%
    Price 96
    Err:502 Err:502
    4.1096%
    Continuous

    1,127.50
    12.75%
    Annuity 10000
    No. of yrs 5
    Rate of int. 9%
    FVA $59,847.11 65,233

    Annuity
    i) Fixed sum
    ii) Fixed time interval between consecutive cash flows

    Cash flow occur at the end - Regular annuity - Bonds, EMIs


    Cash flow occur at the beginning - Annuity due - Insurance premium
    Interest Rate 11.5%
    No. of years 5
    Deposit kept today with the bank 1000000
    FV 0
    Amount to be withdrawn year $273,981.77 200000

    Amount 20,000
    Monthly rate 0.80%
    Maturity Months 240
    PV of annuity 2,130,672
    Retirement Months 360
    Monthly save 1,026 $1,026.13
    Face Value 1000 1000 1000
    Coupon 12% 12% 12%
    Market Price 986 1000 1110
    Current Yield 12.17% 12.00% 10.81%

    Bond P Q
    Maturity in years 5 12
    Face Value 100 100
    Coupon 9.50% 7.65%
    Price 91 111
    Coupon date 1 30-Jun 30-Jun
    Coupon date 2 31st-Dec 31st-Dec
    Settelment date 12/31/2009 12/31/2009
    DCC 30/360 A/ 365
    YTM 11.94% 6.33%
    P Q
    Coupon date Time period CF CF
    0 12/31/2009 -91 -111
    1 6/30/2010 181.00 4.75 3.79
    2 12/31/2010 184.00 4.75 3.86
    3 6/30/2011 181.00 4.75 3.79
    4 12/31/2011 184.00 4.75 3.86
    5 6/30/2012 182.00 4.75 3.81
    6 12/31/2012 184.00 4.75 3.86
    7 6/30/2013 181.00 4.75 3.79
    8 12/31/2013 184.00 4.75 3.86
    9 6/30/2014 181.00 4.75 3.79
    10 12/31/2014 184.00 104.75 3.86
    11 6/30/2015 181.00 11.94% 3.79
    12 12/31/2015 184.00 3.86
    13 6/30/2016 182.00 3.81
    14 12/31/2016 184.00 3.86
    15 6/30/2017 181.00 3.79
    16 12/31/2017 184.00 3.86
    17 6/30/2018 181.00 3.79
    18 12/31/2018 184.00 3.86
    19 6/30/2019 181.00 3.79
    20 12/31/2019 184.00 3.86
    21 6/30/2020 182.00 3.81
    22 12/31/2020 184.00 3.86
    23 6/30/2021 181.00 3.79
    24 12/31/2021 184.00 103.86
    6.43%

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