FAQ — Bonds

How can we know that the functions provide correct results?

In the GIA_Bonds_Examples_XXXX files, by clicking on the button “Click here to generate future cash flows and their present values”, you can see the “behind the scenes” calculations leading to the final result.

How are future cash flows generated in floaters?

Future cash flows in floaters are generated using forward interest rates.

Is the amortization schedule supported?

Yes, the relevant functions are GIA_Bonds_FixedAmort_XXXX and GI_Bonds_Floater_XXXX.

What outcomes besides value and risk metrics are available for bonds?

Yield to maturity, accrued interest and last reset date are among additional outputs in this module.