Resolved Question

The bond valuation formula, what does the 1-1 stand for at the beginning how do you do this formula on a calc?

Im so stuck on this formula, can some please explain how to use the formula.

i really dont understand it

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What type of bonds are you talking about? There are many types and therefore different methods of calculation. In general, you need to take into account the coupon frequency, calculation method, rate (if not floating) and sometimes even a different period at maturity. In banks, these things are calculated by fairly complex computer programs and it can be quite time consuming to work it out on a calculator. I am not sure about the 1-1 that you refer to. I have not come across this in any bond formula that I have seen.

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