FormulaDen logo
FormulaDen.com
Search
Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Price of Bond Formula

Fx Copy
LaTeX Copy
Price of Bond refers to the amount of money an investor pays to purchase the bond from the issuer or another investor in the secondary market. Check FAQs
PB=FV⋅(1+IDR)HP
PB - Price of Bond?FV - Face Value?IDR - Implied Discount Rate?HP - Holding Period?

Price of Bond Example

With values
With units
Only example

Here is how the Price of Bond equation looks like with Values.

Here is how the Price of Bond equation looks like with Units.

Here is how the Price of Bond equation looks like.

127.1314Edit=95Edit⋅(1+0.06Edit)5Edit
Solution
Copy
Reset
Share
You are here -
HomeIcon Home » Category Financial » Category Strategic Financial Management » fx Price of Bond

Price of Bond Solution

Follow our step by step solution on how to calculate Price of Bond?

FIRST Step Consider the formula
PB=FV⋅(1+IDR)HP
Next Step Substitute values of Variables
∴ PB=95⋅(1+0.06)5
Next Step Prepare to Evaluate
∴ PB=95⋅(1+0.06)5
Next Step Evaluate
∴PB=127.131429872
LAST Step Rounding Answer
∴PB=127.1314

Price of Bond Formula Elements

Variables
Price of Bond
Price of Bond refers to the amount of money an investor pays to purchase the bond from the issuer or another investor in the secondary market.
Symbol: PB
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Price of BondOpen Variable
Face Value
Face Value is the amount of money that the issuer of a bond agrees to repay the bondholder at the bond's maturity date.
Symbol: FV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Face ValueOpen Variable
Implied Discount Rate
Implied Discount Rate is the interest rate that equates the present value of the bond's future cash flows to its current market price.
Symbol: IDR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Implied Discount RateOpen Variable
Holding Period
Holding Period refers to the duration of time that an investor owns an asset from the moment it is purchased until it is sold.
Symbol: HP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Holding PeriodOpen Variable

Other formulas in Strategic Financial Management category

​Go Earnings Yield
EY=(EPSMPS)⋅100
​Go Earnings Yield using PE Ratio
EY=(1PE)⋅100
​Go Dividend Rate
DR=(DPSCP)⋅100
​Go Share Exchange Ratio
ER=OPTSASP

How to Evaluate Price of Bond?

Price of Bond evaluator uses Price of Bond = Face Value*(1+Implied Discount Rate)^Holding Period to evaluate the Price of Bond, Price of Bond reflects the present value of the bond's future cash flows, which include periodic coupon payments and the repayment of the bond's face value at maturity. Price of Bond is denoted by PB symbol.

How to evaluate Price of Bond using this online evaluator? To use this online evaluator for Price of Bond, enter Face Value (FV), Implied Discount Rate (IDR) & Holding Period (HP) and hit the calculate button.

FAQs on Price of Bond

What is the formula to find Price of Bond?
The formula of Price of Bond is expressed as Price of Bond = Face Value*(1+Implied Discount Rate)^Holding Period. Here is an example- 127.1314 = 95*(1+0.06)^5.
How to calculate Price of Bond?
With Face Value (FV), Implied Discount Rate (IDR) & Holding Period (HP) we can find Price of Bond using the formula - Price of Bond = Face Value*(1+Implied Discount Rate)^Holding Period.
About | Contact | Disclaimer | Terms | Privacy Policy
© 2025. Developed & Maintained by softUsvista Inc.
Copied!