How can I calculate the current value of a zero coupon bond? - bond research
I am doing research for a newspaper, and I can not understand how to calculate it. I have a model of bond prices, which works for a normal requirement, but I think it can not calculate the exact value of the zero-coupon long-dated.
The par is 40,000 bonds due 12/15/2095. Electricity prices 54.725. I'm trying to understand what is the difference in value will receive a change in the federal funds rate from 5.25% to 5% or 4.75%.
Any help would be very grateful. Thank you.
Wednesday, December 23, 2009
Bond Research How Can I Calculate The Current Value Of A Zero Coupon Bond?
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