DirtyPrice(bond, yield, compounding, opts)

Consider a zero-coupon bond with face value 100 maturing in one year.

For bonds the DirtyPrice is equivalent to the NetPresentValue command when the discount rate is constant and equal to the yield. Similarly, the InternalRateOfReturn command is equivalent to the YieldFromDirtyPrice command.

Consider a 3-year bond with face value of 100 that pays a fixed coupon of 3 percent issued on March 15, 2005.

Reset the default day counter to be Thirty360European.

Calculate the purchase price of the bond using five different methods. Note that by default all rates are assumed to be based on continuous compounding.

Here is the same bond using a different business day convention and day counter.

Note that the NetPresentValue command will adjust the evaluation date according to the underlying business day convention.

Finance[AccruedInterest], Finance[DayCounter], Finance[DirtyPrice], Finance[FixedCouponBond], Finance[FloatingRateBond], Finance[FormatDate], Finance[ParseDate], Finance[YearFraction], Finance[Yield], Finance[ZeroCouponBond]