Quants and Fixed Income

dharde9
Good Student
Posts: 12
Joined: Fri Aug 21, 2015 4:46 am

Quants and Fixed Income

Postby dharde9 » Wed Aug 26, 2015 11:58 am

A 20 year 10% annual bond has a par value of 1000 what is price of bond if YTM = 15%? Now I have to keep signs same for FV=1000 and coupon payment PMT=100 to get right answer but suppose if I have to calculate N on calculator if it's missing figure the sign of PMT and FV or PMT and PV should be opposite. Or should we use Bond function.

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Quants and Fixed Income

Postby edupristine » Tue Sep 15, 2015 7:10 am

The amount which has to be received (FV) is taken positive and the amount which has to be given (PV) is taken negative. There are 5 values from which 4 should be given to calculate the 5th one. So use negative sign with PV to calculate the FV.


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