Tuesday, July 3, 2018

fixed income - 30360 Daycount Count Convention to find NPV for Bonds


Using a 30/360 day count convention, how can you value the NPV of these cash flows and the discount factor? I know how to discount cash flows but how does it differ using a 30/360 approach? What is the approach that I should be using?


Date       Payments     Discount Factor    Discounted Value
12/31/2012 0 100.00%
6/30/2013 75,200

12/31/2013 50,600
6/30/2014 86,700
12/31/2014 77,000
6/30/2015 74,400
12/31/2015 25,200
6/30/2016 70,700
12/31/2016 81,800


No comments:

Post a Comment

technique - How credible is wikipedia?

I understand that this question relates more to wikipedia than it does writing but... If I was going to use wikipedia for a source for a res...