How to Calculate the Price of a Bond (No Financial Calculator Needed!)

I show you the steps to easily calculate the price or value of a bond. No Financial Calculator needed. This is a bond that has coupons and the Yield to Maturity or Market Rate does not match the Coupon Rate.

Summary:
!. How to calculate the Coupon Payment;
2. How to calculate the Present Value of the stream of Coupon Payments;
3. How to calculate the Present Value of the Face Value or Par Value of the Bond; and
4. Put it all together to get the total Price of the Bond.

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Thank you!

[rehan]

Thank you for explaining very clearly especially to those without a financial calculator, this would be a big help.

[wolfepark]

Thank you sharing for explaining very clearly 😀

[juliamukusuka]

You have explained this so well Sir! Thank you 🙏

[rashadmirzazada]

Great explanation, Thank you Professor

[rjaashiapunjabi]

Thank you so much for explaining everything in detail.

[muhammadshahteong]

awesome pen you got there!!! also tq for teaching on how to calculate the bond value

[nasiihaabdi]

Thanks you so much very helpful from Somalia

[abdul-razakibrahim]

Good evening Prof. Am actually enjoying your lectures . But Prof. Where I have problem is the semi annual calculation of bonds and the settlement date and maturity date. Please can you kindly help me with more videos of examples of them please?

[Arthuur]

Thank you so much. Very helpful.
Hi from Morocco.

[mendozaprincessmaeg.]

thank you sir for explaining it so well, I really appreciate it. this video helped me a lot with my struggle on how to calculate the bond price in my report HAHAHAHAHA again thank sir!

[ohangkana]

It is very helpful. Thank you! How do you calculate the price of bonds, if you do not have Yield to Maturity? The question only has "Face Value", "Maturity" and "Coupon".


Find the prices for the following coupon bonds :
• Face value: $100

Maturity Coupon
Bond A 3 1.75%
Bond B 7 2.875%
Bond C 10 3.250%

[irlymsf]

Hello! professor! thanks for your teaching! do you also have a video that explains the reason of this formula as well?

[christopherdavalos]

i know this is a year after you have uploaded, but are there any practice problems you have that are in word problems?

[padayaohansangelo]

How to get the bond price if it's in semi annually or quarterly?

[hay]

what if the question dont give a face value amount - how do you go about finding the bond

[musicworld]

Is there a short calculation because it is so lengthy comparing with other calculation try to recommend new short calculation

[johnsmith-dmtq]

for those of us that dont know algebra, can we have an explanation?