bondFigure: Bond price as a function of interest rate.

In RcmdrPlugin.RiskDemo: R Commander Plug-in for Risk Demonstration

Bond price as a function of interest rate.

Description

This function plots the bond price as a function of interest rate. It also shows, using dotted lines, the yield to maturity rate corresponding to the face value, and the flat price corresponding to the yield to maturity.

Usage

bondFigure(buyDate, matDate, rateCoupon, yieldToMat = NULL, 
           bondPr = NULL, nPay)

Arguments

buyDate	the date when the coupon is bought (settlement date)
matDate	maturity date
rateCoupon	coupon rate (in decimals)
yieldToMat	yield to maturity (in decimals)
bondPr	the flat price of the bond
nPay	number of coupon payments per year

Details

either yieldToMat or bondPr should be given as input.

Value

This function only plots a figure.

Author(s)

Arto Luoma <[e-mail]>

References

Bodie, Kane, and Marcus (2014) Investments, 10th Global Edition, McGraw-Hill Education, (see Section 14.2 Bond Pricing).

See Also

bondPrice, solveYield

Examples

bondFigure("2012-7-31","2018-7-31",rateCoupon=0.0225,yieldToMat=0.0079,
           nPay=2)
bondFigure("2012-7-31","2018-7-31",rateCoupon=0.0225,bondPr=90,nPay=2)

RcmdrPlugin.RiskDemo documentation built on June 22, 2024, 7:06 p.m.