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  • FRA Assignment2 Abhishek Chakraborty N20212201

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    ABHISHEK CHAKRABORTY
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    This document provides an example of using the discounted cash flow (DCF) method to value a bond. It lists the face value, coupon rate, years, cash flows, and present values calculated at two different yield rates of 4.5% and 6.5% over a 6 year period. The DCF calculations show the bond's present value is $99.89 at a 4.5% yield and $89.99 at a 6.5% yield.

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    This document provides an example of using the discounted cash flow (DCF) method to value a bond. It lists the face value, coupon rate, years, cash flows, and present values calculated at two different yield rates of 4.5% and 6.5% over a 6 year period. The DCF calculations show the bond's present value is $99.89 at a 4.5% yield and $89.99 at a 6.5% yield.

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    8 views3 pages

    FRA Assignment2 Abhishek Chakraborty N20212201

    Uploaded by

    ABHISHEK CHAKRABORTY
    This document provides an example of using the discounted cash flow (DCF) method to value a bond. It lists the face value, coupon rate, years, cash flows, and present values calculated at two different yield rates of 4.5% and 6.5% over a 6 year period. The DCF calculations show the bond's present value is $99.89 at a 4.5% yield and $89.99 at a 6.5% yield.

    Copyright:

    © All Rights Reserved
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    Subject : Financial Risk Analytics

    Assignment-2: DCF method of Bond Valuation

    Name: Abhishek Chakraborty

    Roll No. : N20212201


    Assumed figures Years 1 2 3 4
    Face Value ($) 100 Cash Flow 5.5 5.5 5.5 5.5
    N (Years) 6 DCF (4.5%) 5.26 5.04 4.82 4.61
    Coupon Rate (%) 5.5 DCF (6.5%) 5.16 4.85 4.55 4.28
    Yield 1 (%) 4.5%
    Yield 2 (%) 6.5%
    5 6 PV
    5.5 105.5
    4.41 81.01 99.894714588
    4.01 72.30 89.994667194

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