Market Price of Bonds | Exam FM | Financial Mathematics Lesson 22 - JK Math

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How to Calculate the Market Price of Bonds (Financial Mathematics Lesson 22)

In this lesson we learn about how to calculate the price of a bond when it is valued in between coupon dates, also known as the market price of a bond. We discuss how this would be calculated and derive the formula for the market price of bonds. Then we look at an example problem where we use the formula.

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 What is the Market Price of a Bond?
4:34 Example Part 1 - Setup
10:24 Example Part 2 - Calculations
13:26 Example Part 3 - Determining t
16:33 Example Part 4 - Final Calculation

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