course created, lilla, lucy moved over

bin/bonds.ipynb

@@ -0,0 +1,192 @@
+{
+ "cells": [
+  {
+   "cell_type": "code",
+   "execution_count": 6,
+   "id": "9a5b00b8-2d18-4540-80ff-cf985f653dce",
+   "metadata": {},
+   "outputs": [
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "100 30 0.5 3 5 False\n"
+     ]
+    }
+   ],
+   "source": [
+    "class Bond:\n",
+    "    def __init__(\n",
+    "            self,\n",
+    "            par,\n",
+    "            term,\n",
+    "            couponInt,\n",
+    "            paymentFreq,\n",
+    "            intRate,\n",
+    "            amortizing=False):\n",
+    "        self.par=par\n",
+    "        self.term=term\n",
+    "        self.couponInt=couponInt\n",
+    "        self.paymentFreq=paymentFreq\n",
+    "        self.intRate=intRate\n",
+    "        self.amortizing=amortizing\n",
+    "        \n",
+    "    def calculate(self):\n",
+    "        if self.amortizing==True:\n",
+    "            self.par*self.couponInt\n",
+    "        \n",
+    "        print(self.par,self.term,self.couponInt,self.paymentFreq,self.intRate,self.amortizing)\n",
+    "\n",
+    "Ex1=Bond(100, 30,0.5, 3,5, False)\n",
+    "Ex1.calculate()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 1,
+   "id": "7d04967a-d8b9-46f1-8bd4-60b38370a956",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "#Price = ( Coupon × 1 − ( 1 + r ) − n r ) + Par Value ( 1 + r ) n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 1,
+   "id": "365a82d5-7799-4ef0-9735-8f6eb0da9e67",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "#Bond Premium Amortized= P x R – N x Y\n",
+    "#P = Bond issue price, R = Market Rate of interest, N = Nominal or face value and, Y = coupon rate of interest/ Yield."
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 10,
+   "id": "f0143155-7445-417a-ac26-4a7bab893295",
+   "metadata": {},
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "1375.7049230300258"
+      ]
+     },
+     "execution_count": 10,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "class Bond:\n",
+    "    def __init__(\n",
+    "            self,\n",
+    "            par,\n",
+    "            term,\n",
+    "            couponInt,\n",
+    "            paymentFreq,\n",
+    "            intRate,\n",
+    "            amortizing=False):\n",
+    "        self.par=par\n",
+    "        self.term=term\n",
+    "        self.couponInt=couponInt\n",
+    "        self.paymentFreq=paymentFreq\n",
+    "        self.intRate=intRate\n",
+    "        self.amortizing=amortizing\n",
+    "        \n",
+    "    def calculate(self):\n",
+    "        if self.amortizing==False:\n",
+    "            price=(((self.par*self.couponInt)*(1-(1+self.intRate)**-self.paymentFreq)/self.intRate)+(self.par/(1+self.intRate)**self.term))\n",
+    "            return(price)\n",
+    "        else:\n",
+    "            1==1\n",
+    "            \n",
+    "\n",
+    "Ex1 = Bond(1000, 4, .25, 4, .125, False)\n",
+    "Ex1.calculate()\n",
+    "\n"
+   ]
+  },
+  {
+   "cell_type": "raw",
+   "id": "ca78ef5f-b510-4046-9e25-b25774acc50f",
+   "metadata": {},
+   "source": [
+    "non-amortizing\n",
+    "month  balance  principal  interest\n",
+    "0      100      0          5\n",
+    "1      100      0          5\n",
+    "2\n",
+    "3\n",
+    "...\n",
+    "119   100       0          5\n",
+    "120   0         100        5\n",
+    "\n",
+    "\n",
+    "Amortizing bond:\n",
+    "r = 6%\n",
+    "month  balance  principal  interest\n",
+    "0      100      0.          0\n",
+    "1      99.9      .1         0.5\n",
+    "2      99.799    .101       0.499\n",
+    "...\n",
+    "119    1        1          0.051\n",
+    "120    0        1          0.05\n",
+    "\n",
+    "condition: \n",
+    "r = a given number (yearly interest rate) \n",
+    "interest = previuos balance * r / 12\n",
+    "principal + intersst = constant for the life of the bond\n",
+    "balance at the final month = 0\n",
+    "\n",
+    "create a function:\n",
+    "f( first principal) -> last balance\n",
+    "\n",
+    "def lastBalance( fp):\n",
+    "    ....\n",
+    "    ....\n",
+    "    ....\n",
+    "    \n",
+    "lastBalance(0.1) \n",
+    "2\n",
+    "\n",
+    "lastBalance(1) \n",
+    "-20\n",
+    "\n",
+    "\n",
+    "\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "id": "b1adb876-0acb-439f-a32c-5b20d87c0e02",
+   "metadata": {},
+   "outputs": [],
+   "source": []
+  }
+ ],
+ "metadata": {
+  "kernelspec": {
+   "display_name": "Python 3 (ipykernel)",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "codemirror_mode": {
+    "name": "ipython",
+    "version": 3
+   },
+   "file_extension": ".py",
+   "mimetype": "text/x-python",
+   "name": "python",
+   "nbconvert_exporter": "python",
+   "pygments_lexer": "ipython3",
+   "version": "3.10.7"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 5
+}