标题: Bond Price and Bond Value [打印本页] 作者: manchester88 时间: 2011-7-11 17:44 标题: Bond Price and Bond Value
Hello all ,
Just a lil confusion between bond price and bond value .....Can someone pls explain the difference between both
Regards
Niki作者: joemoran 时间: 2011-7-11 17:44
Same thing!作者: LokiDog2 时间: 2011-7-11 17:44
The formula to calculate Bond price and bond value are different
Bond Value = Maturity value/
(1+i) years till maturity ^2
Bond price = cpn/(1+ytm/2)+cpn2/(1+ytm/2) and so on...作者: trogulj 时间: 2011-7-11 17:44
The first formula you have given is the present value of the bond redemption exclusive of any coupon payments between T=0 and maturity date. It doesn't make sense to value a bond exclusive of any future coupon payments.
The price or value of any asset should theoretically be the present value of all of the assets future cash flows. Therefore coupons should be included in the calculation.作者: bapswarrior 时间: 2011-7-11 17:44
Soddy: If I may correct you:
The first formula is basically to value a zero coupon bond assmuning semiannual compounding.
The second one is for valuing a coupon bearing bond assuming that the ytm is quoted in terms of bond equivalent yields. Of course, the final payment in the stream should be the face value.作者: Beatnik 时间: 2011-7-11 17:44
