Bond Book Value

With the Bond Book Value calculation you can find the previous and the next coupon day of a bond, find its initial book value and market quote, whether it is purchased at a premium or a discount, and find the remaining coupon payments.

When details are shown, a bond shedule is displayed.

If the settlement day does not coincide with a coupon day, FinKit uses the first coupon day before the settlement day to set up the schedule.

Input

• required yield
• settlement date
• redemption date
• annual, semiannual or quarterly coupon rate
• face value
• redemption value

Results

• initial book value (market price on the first coupon day)

• initial market quote

• premium or discount

• number of remaining coupon payments

Examples

•

A $1,000 bond, redeemable at par on December 1, 2005, pays semiannual coupons at 9 % compounded semiannually.
The bond is bought on June 1, 2003.

Find the market price on the first coupon day and construct a bond schedule, if the required yield is 8 % compounded semiannually.

Input	Required yield:	8 %
	Settlement date [mm/dd/yyyy]:	06/01/2003
	Redemption date [mm/dd/yyyy]:	12/01/2005
	Semiannual coupon rate:	9 %
	Face value:	1,000
	Redemption value:	1,000

Result	Market price:	1,022.26

Answer: $1,022.26. The bond schedule is displayed in the Details.

•

Suppose that in the above example, the bond is redeemable at 110.

What would be the premium?

Input	Required yield:	8 %
	Settlement date [mm/dd/yyyy]:	06/01/2003
	Redemption date [mm/dd/yyyy]:	12/01/2005
	Semiannual coupon rate:	9 %
	Face value:	1,000
	Redemption value:	1,100

Result	Premium:	4.45

Answer: There would be a $4.45 premium.

Related topics

Zero-Coupon Bond Price