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.

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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