Yes, to calculate the flat price you need multiply the bond price by (1+YTM)^(t/T), t are the days after the last coupon settlement. After that you will have the PV full, so you need subtracted by the accrued interest (t/T)*PMT. So Flat Price = PVfull - AI = [BondPrice*(1+YTM)^(t/T)] - (t/T)*PMT.
Outstanding; exactly what I needed! Thank you
are u studying for cfa ?
Do you have an example without dates. I.e. 8% cupon, 10% yield, 30 years. What's the price?
Nice content, how do you typically discount a cash flow that has 12 days left in the month?
How do you use the TVM functions when the bond settles between coupon dates?
Is the bond trading dirty or not - ie with or without accrued interest?
Want to know the same. Would be a time saver of it's the dirty price
@@nyikomnisi9713 That result includes any accrued i%
Yes, to calculate the flat price you need multiply the bond price by (1+YTM)^(t/T), t are the days after the last coupon settlement. After that you will have the PV full, so you need subtracted by the accrued interest (t/T)*PMT. So Flat Price = PVfull - AI = [BondPrice*(1+YTM)^(t/T)] - (t/T)*PMT.
how do you change to calculate annual bonds?
Tanto demoras por indicar los benditos botones
it doesn't work on my calculator