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Hi David

On notes page 98 and 99 .

We still start with the cash flows. But instead of spot rates, we discount will forward rates.

The key here is to keep your “raise to powers” consistent.

Price $3/(1+0.015/2)^1 + 103/1+0.015/2)^1 * (1+0.025/2)^1

how can i check for bond prices using forward rates such as 2.75 , 3.25 and 3,75

How can i calculate Bond price using Par rates . kindly help me

Vikas

On notes page 98 and 99 .

We still start with the cash flows. But instead of spot rates, we discount will forward rates.

The key here is to keep your “raise to powers” consistent.

Price $3/(1+0.015/2)^1 + 103/1+0.015/2)^1 * (1+0.025/2)^1

how can i check for bond prices using forward rates such as 2.75 , 3.25 and 3,75

How can i calculate Bond price using Par rates . kindly help me

Vikas

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