present-value

Hi @David Harper CFA FRM I'm quite confused on why when computing the present value of the floating leg only the notional amount and the LIBOR that corresponds to the last payment date is considered. I don't understand why we don't consider all the other LIBOR rates in the corresponding pay...

Superficially, the yield to maturity (YTM, aka yield) simply inverts the usual time value of money (TVM) inputs by solving for the yield as a function of four inputs: face (future) value, coupon (payment), maturity (time), and current price (present value). But in terms of interpretation, I...

Learning objectives: Define discount factor and use a discount function to compute present and future values. Define the “law of one price,” explain it using an arbitrage argument, and describe how it can be applied to bond pricing. Identify the components of a US Treasury coupon bond, and...