bond valuation

Essay specific features

 

Issue:

Business

 

Written by:

Esther D

 

Date added:

January 14, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 525

 

Was viewed:

1325 times

 

Rating of current essay:

 
Essay content:

However, if there is a chance that the promised payments won't be made in full, the promised payment is the maximum possible amount (no one pays more than promised) and the expected payment must be less than the promised payment. 2. Here is the basic bond valuation equation: Bond Value = C/(1+k)1 + C/(1+k)2 + ??+ C/(1+k)n + ParValue/(1+k)n Where: C is the coupon payment n is the number of years to maturity k is the appropriate annual discount rate Note: Most bonds make semi-annual payments and this requires some changes to the above expression...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

The payments must be halved, the discount rate must be halved, and the half-year intervals must be included. For a bond with semi-annual payments, Bond Value = .5C/(1+k/2)1 + .5C/(1+k/2)2 + ??+ .5C/(1+k)2n + ?. + ParValue/(1+k/2)2n 3. The above equation is very easy to use within Excel. Just put the coupon payments and principal payments in a string of consecutive cells...
displayed 300 characters

General issues of this essay:

Related essays:

x
Services