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Introductory Bondpricing

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Uploaded on Jul 30, 2009

Most Bonds have a contract that lay out when you can expect the cash flows so drawing a timeline is relatively straightforward applicaton of the basic Time Value of Money of money techniques taught in all introductory finance classes.

A fast review of how to price bonds:
1. Draw Timeline
2. Find Present Value of Cash Flows.
3. Sum present values.

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