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Chapter 5. Bonds. Manual for SOA Exam FM/CAS Exam 2.
 

Summary: 1/??
Chapter 5. Bonds.
Manual for SOA Exam FM/CAS Exam 2.
Chapter 5. Bonds.
Section 5.3. Book value and amortization schedules.
c 2009. Miguel A. Arcones. All rights reserved.
Extract from:
"Arcones' Manual for the SOA Exam FM/CAS Exam 2,
Financial Mathematics. Fall 2009 Edition",
available at http://www.actexmadriver.com/
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam FM/CAS Exam 2.
2/??
Chapter 5. Bonds. Section 5.3. Book value and amortization schedules.
Book value
The book value Bk of a bond at time k of a bond is the present
value of the payments to be made, i.e. the present value at time k
of the remaining n - k coupons and the redemption value C. This
is also the outstanding balance of the loan at that time. So, Bk
can be found using any of the following expressions:
Bk = Fran-k

  

Source: Arcones, Miguel A. - Department of Mathematical Sciences, State University of New York at Binghamton

 

Collections: Mathematics