Page 1 of 1

Bond Pricing Question

Posted: March 5th, 2004, 7:22 am
by marcos
Hi,I would be very grateful if anyone could tell me if this is correct when it comes to the callable bond, that when the valuation date is equal to the end date then the price of the callable equals the strike. Thanks.callable = reference - call option = reference - max(reference-K,0) = K ?

Bond Pricing Question

Posted: March 5th, 2004, 7:55 pm
by derivababy
Hi Marcos,think u confuse some terms.start looking over this spdshthope this helps