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How are bond prices quoted?

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24th Feb 2011 by admint

A bond price is determined by getting the difference of the present appropriate discount rate and the bond’s expected cash flows.
Below is a formula to be used to calculate the bond price.

B0 = bond value
C=annual coupon payment
F= face value of the bond
r = the required return on the bond
t = the number of years remaining until maturity


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1st Nov 2009 In Bonds 1 Answers | 149 Views
Subjects: bond, bond prices, bonds,

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How are bond prices quoted?


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