In this guide, you’ll see how to calculate the bond price using Excel. Here are the steps: Steps to Calculate the Bond Price using Excel Let’s explore the process of calculating the following bond price using Excel: What is the bond price? Here is the short version of the calculation to get the bond price: … Read more
Here is a simple template to calculate the Present Value (pv) using Python: fv = future value r = interest rate n = number of periods pv = fv/(1+r/100)**n print(pv) Steps to Calculate the Present Value using Python Step 1: Gather your Data To start, you’ll need to gather the data for the Present Value … Read more
You can use the following template to calculate the NPV using numpy_financial: import numpy_financial as npf npv = npf.npv(discount rate, [initial investment in negative terms, cash flow for each year separated by comma]) print(npv) Let’s now review a simple example with the steps to calculate the NPV. Steps to Calculate the NPV using Numpy Step … Read more
To calculate the IRR using numpy_financial: import numpy_financial as npf irr = npf.irr([initial investment in negative terms, cash flows each year separated by commas]) print(irr) Steps to calculate the IRR using numpy_financial Step 1: Install the numpy_financial package If you haven’t already done so, install the numpy_financial package using: pip install numpy_financial Step 2: Calculate … Read more
In this short guide, you’ll see how to calculate the bond duration. More specifically, you’ll see how to calculate the: To start, here is the formula that you can use to calculate the Macaulay duration (MacD): (t1*FV)(C) (tn*FV)(C) (tn*FV) MacD = (m*PV)(1+YTM/m)mt1 + … + (m*PV)(1+YTM/m)mtn + (PV)(1+YTM/m)mtn Where: Once you calculated the Macaulay duration, … Read more
In this short guide, you’ll see how to calculate the bond price using Python. Calculate the Bond Price using Python Here is a template that you can use to calculate the bond price using Python: m = number of payments per period (e.g., m=2 for semiannually payments) t = number of years to maturity ytm … Read more
You can use the following equation to calculate the Bond Price: PMT x [1 – (1 + i)-N] Bond Price = i + FV x (1 + i)-N Where: Example of calculating the bond value Let’s suppose that you have a bond, where the: What is the Bond price? The Solution Since we are dealing with … Read more