Pricing a bond with different YTM (at cross sectional level)

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Saad
Saad on 29 Jun 2011
Dear Sir or Madam
I was wondering if there is a function in matlab that prices bonds with different YTM?. For example:
Bond price= coupon/(YTM_1) +coupon/(YTM_2)^2+.................+coupon/(YTM_n)^n
Thank you very much
S

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Answers (3)

Oleg Komarov
Oleg Komarov on 29 Jun 2011
N = 100;
C = 5; %Semi-annual
YTM = rand(1,10)*.1;
P = sum([C./(1+YTM(1:9)).^(1:9), (N+C)/(1+YTM(10))^10]);
Or if you have the financial toolbox for precise daycounts use bndprice
Fangjun Jiang
Fangjun Jiang on 29 Jun 2011
You know, MATLAB has Financial Toolbox
Saad
Saad on 30 Jun 2011
To Fangjun /Oleg I know that but I have a time series of bond and for each row I have a zero rate with different maturities so bndprice doesnt work....
in each row i have to account for different YTM at different maturities and I have to account for accrual coupon rate..any ideas how to solve that??
  1 Comment
Oleg Komarov
Oleg Komarov on 6 Jul 2011
You can still apply a vectorized solution from my example.
To be more precise you need to provide an example on how you stored all of that info.

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