Message from @BryceB-ND
Discord ID: 406167366028886036
Dude runs an NGO lol
He's jewish too I'm weak
@here Anyone know anything about bond valuation ?
@BryceB-ND Yes! What's the question?
Also yes
If you have a floater and an inverse floater derived from your collateral, is the coupon rate of the collateral the weighted average of the floater and inverse floater?
I got 8%
I used this as my example to go off of.
I also want to check my work on computing the dirty and clean price as well as accrued interest of another example in case you both have an idea on that as well
This is a similar example.
Lemme find my calculator
^uploading
ty
Pretty sure 8 is correct
Would just be the average
Ok good that's what i had thought
What's the other question?
3. Assume the original maturity a bond with face value $1000 is 8 years. The annualized
yield to maturity for the bond is 6.25% and its annual coupon rate is 7.5% being
2
semiannually paid. The bond was issued on 8/1/2015, and bought on 12/1/2017.
Compute the following:
(1) dirty price, (2) clean price and (3) accrued interest. (7 points)
I understand this problem, what I don't get is how to calculate the accrued interest because I don't know how to determine the intervals of the semi annual interest payments.
Hmm. Send pic of question
2 min
Ok so the equation for AI might be
cash flow (1-(days/total days in coupon period))
Idk that helps
Yeah I know that much, thank you, I'm having trouble just discerning the days since the last coupon payment from the dates given is all.
Bonds usually pay interest on the first day of January and July
That's usually what semiannual implies.
Ok.
Ty
@SamanthaM awesome, I think this is the first homework help of the new academic channels!
Would anyone @here be willing to read my rought draft for a paper I'm writing on this video:
Also any specific sources to help back up my statements would be appreciated
@StrawberryArmada I suggest putting the paper into a google doc, and creating a share link where anyone with the link can comment on (but not edit) the document
Good idea
This should work
Halp pls
:)