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    When KD Is Less Than Coupon Intrest Rate

    Uploaded by

    Amit Kr Godara
    The document contains information about bond prices over time for different scenarios of interest rates. It shows the future value (Vb) of a Rs. 1000 bond over 30 months when the market discount rate (Kd) is less than, equal to, or greater than the coupon interest rate. When Kd is less than the coupon rate, the bond price increases each month up to Rs. 1372 at 30 months. When Kd equals the coupon rate, the price remains Rs. 1000 each month. When Kd is greater, the price decreases each month down to Rs. 775 at 30 months.

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    When KD Is Less Than Coupon Intrest Rate

    Uploaded by

    Amit Kr Godara
    39 views3 pages
    The document contains information about bond prices over time for different scenarios of interest rates. It shows the future value (Vb) of a Rs. 1000 bond over 30 months when the market discount rate (Kd) is less than, equal to, or greater than the coupon interest rate. When Kd is less than the coupon rate, the bond price increases each month up to Rs. 1372 at 30 months. When Kd equals the coupon rate, the price remains Rs. 1000 each month. When Kd is greater, the price decreases each month down to Rs. 775 at 30 months.

    Original Title

    P41089_SSMD.xlsx

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    The document contains information about bond prices over time for different scenarios of interest rates. It shows the future value (Vb) of a Rs. 1000 bond over 30 months when the market discount rate (Kd) is less than, equal to, or greater than the coupon interest rate. When Kd is less than the coupon rate, the bond price increases each month up to Rs. 1372 at 30 months. When Kd equals the coupon rate, the price remains Rs. 1000 each month. When Kd is greater, the price decreases each month down to Rs. 775 at 30 months.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    39 views3 pages

    When KD Is Less Than Coupon Intrest Rate

    Uploaded by

    Amit Kr Godara
    The document contains information about bond prices over time for different scenarios of interest rates. It shows the future value (Vb) of a Rs. 1000 bond over 30 months when the market discount rate (Kd) is less than, equal to, or greater than the coupon interest rate. When Kd is less than the coupon rate, the bond price increases each month up to Rs. 1372 at 30 months. When Kd equals the coupon rate, the price remains Rs. 1000 each month. When Kd is greater, the price decreases each month down to Rs. 775 at 30 months.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    when Kd is less than

    coupon intrest rate


    FV 1000
    CIR 10%
    Coupon 100
    Kd 0.07

    N(months) Vb
    30 ₹1,372.27
    29 ₹1,368.33
    28 ₹1,364.11
    27 ₹1,359.60
    26 ₹1,354.77
    25 ₹1,349.61
    24 ₹1,344.08
    23 ₹1,338.17
    22 ₹1,331.84
    21 ₹1,325.07
    20 ₹1,317.82
    19 ₹1,310.07
    18 ₹1,301.77
    17 ₹1,292.90
    16 ₹1,283.40
    15 ₹1,273.24
    14 ₹1,262.36
    13 ₹1,250.73
    12 ₹1,238.28
    11 ₹1,224.96
    10 ₹1,210.71
    9 ₹1,195.46
    8 ₹1,179.14
    7 ₹1,161.68
    6 ₹1,143.00
    5 ₹1,123.01
    4 ₹1,101.62
    3 ₹1,078.73
    2 ₹1,054.24
    1 ₹1,028.04
    0 ₹1,000.00
    when kd is > coupon when kd is equal to
    interest rate coupon interest rate
    FV 1000 FV 1000
    CIR 10% CIR 10%
    Coupon 100 Coupon 100
    Kd 0.13 Kd 0.1

    N(months) Vb N(months) Vb
    30 ₹775.13 30 ₹1,000.00
    29 ₹775.90 29 ₹1,000.00
    28 ₹776.76 28 ₹1,000.00
    27 ₹777.74 27 ₹1,000.00
    26 ₹778.85 26 ₹1,000.00
    25 ₹780.10 25 ₹1,000.00
    24 ₹781.51 24 ₹1,000.00
    23 ₹783.11 23 ₹1,000.00
    22 ₹784.91 22 ₹1,000.00
    21 ₹786.95 21 ₹1,000.00
    20 ₹789.26 20 ₹1,000.00
    19 ₹791.86 19 ₹1,000.00
    18 ₹794.80 18 ₹1,000.00
    17 ₹798.13 17 ₹1,000.00
    16 ₹801.88 16 ₹1,000.00
    15 ₹806.13 15 ₹1,000.00
    14 ₹810.93 14 ₹1,000.00
    13 ₹816.35 13 ₹1,000.00
    12 ₹822.47 12 ₹1,000.00
    11 ₹829.39 11 ₹1,000.00
    10 ₹837.21 10 ₹1,000.00
    9 ₹846.05 9 ₹1,000.00
    8 ₹856.04 8 ₹1,000.00
    7 ₹867.32 7 ₹1,000.00
    6 ₹880.07 6 ₹1,000.00
    5 ₹894.48 5 ₹1,000.00
    4 ₹910.77 4 ₹1,000.00
    3 ₹929.17 3 ₹1,000.00
    2 ₹949.96 2 ₹1,000.00
    1 ₹973.45 1 ₹1,000.00
    0 ₹1,000.00 0 ₹1,000.00
    Price path of a Bond
    ₹1,500.00
    ₹1,400.00
    ₹1,300.00
    ₹1,200.00
    ₹1,100.00
    ₹1,000.00
    ₹900.00
    ₹800.00
    ₹700.00
    ₹600.00
    ₹500.00
    30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

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