Originally Posted by

**dexteronline** IBOND DAVE PRICE CALCULATION WHEN YTM is 11%

Compounding = semi annually

Par Value = 1000

Coupon Rate = 0.045

Market Rate = 0.055

N = 38

Non Zero Bond Price Formula

Coupon Rate x Par Value x PVIFA(ytm%, n) + Par Value x PVIF(ytm%, n)

PVIFA Formula

PVIFA(ytm%, n) = [1 - v] / ytm%

v = 1 / (1 + ytm%)^n

PVIFA(ytm%, n) = [1 - { 1 / (1 + ytm%)^n }] / ytm%

PVIFA Calculation

v = 1 / (1+0.055)^38

v = 0.1307394139635

PVIFA(0.055, 38) = [1 - 0.1307394139635] / 0.055

PVIFA(0.055, 38) = 0.8692605860365 / 0.055

PVIFA(0.055, 38) = 15.804737927936

PVIF Formula

PVIF(ytm%, n) = 1 / (1 + ytm%)^n

PVIF Calculation

PVIF(0.055, 38) = 1 / (1+0.055)^38

PVIF(0.055, 38) = 1 / 7.6488028336976

PVIF(0.055, 38) = 0.1307394139635

Non Zero Bond Price Calculation

Price = 0.045 x 1000 x 15.804737927936 + 1000 x 0.1307394139635

Price = 711.21320675713 + 130.7394139635

Price = 841.95