| Bond Pricing |
|
|
|
|
|
|
|
| A
T-period bond with coupon payments of $C |
||||||
| per
period and a face value of F. |
||||||
| The
value of this bond can be computed as the |
||||||
| sum
of the present value of the annuity |
||||||
| component
of the bond plus the present value |
||||||
| of the FV. |
||||||