14 Bond Pricing

In this video, we explore how to calculate bond prices by considering varying maturities, coupon rates, and spot rates. We'll use a simplified face value of 1000 pounds for all bonds and demonstrate the process with concrete examples, showing how to discount future cash flows to their present value. Learn how different spot rates and coupon rates significantly impact a bond's final price. This tutorial also covers a shortcut for calculating bond prices when spot rates are flat, utilizing annuity formulas for efficiency. Subscribe to @AxiomTutoringCourses for more financial tutorials.