How to Calculate the Present Value using Python

You can use the following template to calculate the Present Value 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 … Read more

How to Calculate NPV using Numpy (with example)

You can use the following template to calculate the NPV using Numpy: import numpy as np npv = np.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

How to Calculate the IRR using Numpy

Here is a simple template that you can use in order to calculate the IRR using numpy: import numpy as np irr = np.irr([initial investment in negative terms, cash flows each year separated by commas]) print (irr) Steps to calculate the IRR using Numpy Step 1: Install the numpy package If you haven’t already done … Read more

How to Calculate the Bond Duration (example included)

In this short post, you’ll see how to calculate the bond duration. More specifically, you’ll see how to calculate the: Macaulay duration; and Modified duration 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: m = … Read more

How to Calculate the Bond Price using Python

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

How to Calculate the Bond Price (example included)

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: N = (Number of payments per period) x (Number of years to maturity) i = (Interest rate or YTM) / (Number of payments per … Read more