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Ok so say with example A. on page 272 there is an increase in the yield curve of +25 basis points. This is obviously going to see the new bond trade at a discount. In the first example we see the new bond price being 99.5312. How do we calculate this figure? I'm obviously putting in the TVM calculation incorrectly.
N=2
i/y = .25
pv = compute (99.50186877)
pmt = 0
fv = 100
If someone can please let me know what I'm doing wrong
thanks - steph |
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