Constant annuity bond pricing formula? - annuity formula in bond pricing
(a) establish and declare the constant prices of cash bonds form, indicating how the console and derived the zero-coupon bonds of this formula is as special cases.
(c) Explain how to influence the market interest rate, the rediscount rate, face value, the time until the price for the maturity of a bond.
establish (b) the formula in practice, if a band the right price? To discuss.
Thanks for any help you can give me! I need it as soon as possible please =)
Saturday, February 6, 2010
Annuity Formula In Bond Pricing Constant Annuity Bond Pricing Formula?
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1 comments:
A. I have no idea what it is.
C. If the interest rate market is higher than the coupon at a discount trading, below the letter. If the interest rate market is lower than the coupon will be negotiated at a rate higher than the face value. More bond maturing price is approaching its nominal value.
B. Who cares, Finanical Use a calculator for this.
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