How do I construct a synthetic zero coupon bond?
May 20, 2011
How do I create/construct a zero coupon bond using two coupon bonds with different prices but the same maturity date? I believe it is called a synthetic coupon bond or a STRIP. For example, if there are two coupon bonds maturing in 5 years. The price of bond #1 is ,100 with a 8% coupon [...]
Can I calculate present value of a zero coupon bond?
October 1, 2010
I have a zero coupon bond that will mature on a certain date for a certain face amount and is earning a certain interest rate. I think this should be enough info. to calculate its present value, but the calculators I’ve found on-line ask for too many things I don’t understand and don’t seem relevant. [...]
A zero coupon bond with a face value of 30,000 matures in 15 years. What should the bond be sold for now if?
June 6, 2010
A zero coupon bond with a face value of 30,000 matures in 15 years. What should the bond be sold for now if its rate of return is to be 4.911% compounded annually?
How can I calculate the current value of a zero coupon bond?
April 4, 2010
I’m doing research for a paper and I can’t seem to figure out how to calculate this. I have a bond pricing model that works for a normal bond but I can’t seem to calculate a correct value for a zero coupon with a very long maturity. The bond is 40,000 Par, matures 12/15/2095. Current [...]