Bond valuation

Final 1018 views 2 replies

job

424 Points Joined July 2007

Bond Valuation

c/(1+r)+C/(1+r)^2+++++++++m/(1+r)^n

Could you explain how the above formula becomes like below

Image result for bond valuation examples

Step-by- step explanation require as i have no knowleged in this subject

thanks

Replies (2)

Guest

The series is geometric progression series, where r= 1/(1+r)

Applying the sum formula of GP series, you get the result.

job

424 Points Joined July 2007

Dear Sir,

THANK YOU VERY MUCH

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