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  2. What Are Callable Bonds? How They Work and How To Invest - AOL

    www.aol.com/finance/callable-bonds-161308719.html

    Since the call price for callable bonds is capped at the time the bond is issued, there is limited potential for the bond to appreciate in value. Example of a Callable Bond Here’s an example of ...

  3. Callable bond - Wikipedia

    en.wikipedia.org/wiki/Callable_bond

    The call price will usually exceed the par or issue price. In certain cases, mainly in the high-yield debt market, there can be a substantial call premium. Thus, the issuer has an option which it pays for by offering a higher coupon rate. If interest rates in the market have gone down by the time of the call date, the issuer will be able to ...

  4. Valuation of options - Wikipedia

    en.wikipedia.org/wiki/Valuation_of_options

    In finance, a price (premium) is paid or received for purchasing or selling options.This article discusses the calculation of this premium in general. For further detail, see: Mathematical finance § Derivatives pricing: the Q world for discussion of the mathematics; Financial engineering for the implementation; as well as Financial modeling § Quantitative finance generally.

  5. Embedded option - Wikipedia

    en.wikipedia.org/wiki/Embedded_option

    For bonds here, there are two main approaches, as follows. [2] Other securities with embedded derivatives are priced similarly. Depending on the type of option, the option price , as calculated using the Black–Scholes ( or other ) model, is either added to or subtracted from the price of the "straight" bond (i.e. as if it had no optionality ...

  6. Check or calculate the value of a savings bond online - AOL

    www.aol.com/finance/check-calculate-value...

    For premium support please call: 800-290-4726 ... by using the savings bond calculator on the TreasuryDirect ... in October 1994 would be worth today. EE bonds are guaranteed to double in value ...

  7. Why do bond prices move up and down? 3 key reasons - AOL

    www.aol.com/finance/why-bond-prices-move-down...

    For premium support please call: 800-290-4726 more ways to reach us. ... a premium bond will decrease in price toward par value as maturity nears. Then at maturity the owner receives the bond’s ...

  8. Bond option - Wikipedia

    en.wikipedia.org/wiki/Bond_option

    In finance, a bond option is an option to buy or sell a bond at a certain price on or before the option expiry date. [1] These instruments are typically traded OTC.. A European bond option is an option to buy or sell a bond at a certain date in future for a predetermined price.

  9. Bond plus option - Wikipedia

    en.wikipedia.org/wiki/Bond_plus_option

    Say we are using the Black–Scholes price for the call, and that we strike the option at the money, the volatility is the defining part here. A call on an underlying with implied volatility of 25% will give you a Black–Scholes price of $15.7 while with a volatility of 45%, you'd have to pay $21.76. [2]