Price of Callable Bonds Examples | Exam FM | Financial Mathematics - JK Math

Example Problems For How to Calculate the Price of Callable Bonds (Financial Mathematics)

In this video we look at practice problems of calculating the price of callable bonds based on their coupon and yield rates. This includes callable bonds that will be bought at a discount, premium, and par value.

This course is designed to help students understand the concepts of mathematics of investment and credit, as well as provide a starting point in preparation for the Actuarial Exam FM (Financial Mathematics).

Financial Mathematics requires a proficient understanding of Calculus concepts such as derivative and integration techniques. This implies that a solid understanding in various algebra skills, including manipulating equations, basic factoring methods, solving logarithmic equations, and more, are also required to fully comprehend and learn the concepts of the Financial Mathematics course.

Video Chapters:
0:00 Example 1 - Price of Discount, Par Value, & Premium Callable Bonds
10:45 Example 2 - Price of Discount & Premium Callable Bonds
15:53 Outro

⚡️Math Products I Recommend⚡️

⚡️Textbooks I Use⚡️

⚡️My Recording Equipment⚡️

(Commissions earned on qualifying purchases)

Find me on social media:
Instagram: @jk_mathematics

Found this video to be helpful? Consider giving this video a like and subscribing to the channel!

Thanks for watching! Any questions? Feedback? Leave a comment!

-Josh from JK Math

#math #finance #examfm

Disclaimer: Please note that some of the links associated with the videos on my channel may generate affiliate commissions on my behalf. As an amazon associate, I earn from qualifying purchases that you may make through such affiliate links.

[chrismarrone]

How would things change if the face value is 100, the redemption value is 110, the coupon rate is 8%, and the yield is 8%? Would the price be 100 or 110?