Intermediate Bond Pricing Tool

This tool is a little more difficult to use. I begin by looking up a bond sold on the secondary market using my personal brokerage account. Apply all the statistics you can find to the top section of the tool, and leave the rest alone. I have used Apple as an example. Adjust the yearly chance of payment default until the Price in the last row equals the current price the bond is being sold at.

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This will allow you to know the implied probability that the company will go out of business during the life of the bond, as well as some other key statistics.

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