1. VanBuren77

    Bond Pricing Formula

    Hi - I am a bit stumped on the algebra to go from this general sum of the bond pricing formula: P(C,y,N,m) = P = $\sum_{i=1}^{N} (C/m)(1+y/m)^i + 1/(1+y/m)^N$ To: C/y(1-1/(1+y/m)^N) + 1/(1+y/m)^N Why does the sum become a "1 - "? And if someone can help me figure out how to write latex...
  2. Nicole Seaman

    P1.T4.905. Gross versus net bond returns, bond spread and bond yield (Tuckman Ch. 3)

    Learning objectives: Distinguish between gross and net realized returns, and calculate the realized return for a bond over a holding period including reinvestments. Define and interpret the spread of a bond, and explain how a spread is derived from a bond price and a term structure of rates...