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simple discount

How Do You Calculate The Discount On A Bond?

January 24, 2024 by Ahmed Ali

How Do You Calculate The Discount On A Bond? The sum of the present value of coupon payments and principal is the market price of the bond. Market Price = $862.30 + $96.39 = $958.69. Since the market price is below the par value, the bond is trading at a discount of $1,000 – $958.69

Categories Finance and Business Tags bond premium, bond price, discount, discount rate, simple discount

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