The market price of a bond is determined using the current interest rate compared to the interest rate stated on the bond. The market price of the bond comprises two parts. The first part is the ...
Discover how to calculate present value (PV) in Excel, exploring concepts like future value, interest rates, and periods for ...
Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...
Image source: Flickr user Ken Funakoshi. A perpetual annuity, also called a perpetuity, promises to pay a certain amount of money to its owner forever. A classic example would be that of a perpetual ...
Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income ...
Learn how bond pricing works by learning how to value a bond in just 10 minutes. Bonds are a more complex investment than common stocks as their prices are immediately impacted by things like ...