This follows Tuckman's example in Chapter 2. When the yield is unchanged, a bond pulls to par. HOWEVER, the assumption of unchanged yield is unrealistic. Here we assume the term structure (of spot and forward rates) in unchanged. Specifically, this is a 2.5-year swap (or bond) where the fixed...
There are two ways to price a bond with the calculator: using the built-in bond worksheet, or using the time value of money (TVM) functions (i.e., N, I/Y, PV, PMT, and FV). This video shows you how to use the set of TVM to quickly find the price or yield of a bond. Notice that the approach is...
This video will show you two different approaches to retrieving a bond's full and flat price when we have the realistic situation of a settlement date that occurs in between two coupon dates.
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