Bond issue price = present value of interest converted at market interest rate+par value due at market interest rate.

Bond price = bond face value /( 1+ market interest rate) year+σ bond face value * bond interest rate /( 1+ market interest rate) year.

The bond issuance price is based on the interest cash flow of each period during the bond duration and the face value cash flow paid by the bond at maturity.

Extended data

The basic factors that determine the bond issue price are as follows:

1, bond denomination

The face value of a bond is the amount indicated in the bond market. Enterprises can diversify the face value of bonds according to the needs of different subscribers, including large face value and small face value.

2. coupon rate

Coupon rate can be divided into fixed interest rate and floating interest rate. Generally speaking, enterprises should decide which interest rate form and level to choose according to their own credit status, the company's affordability, the trend of interest rate change and the length of bond term. Wealth life

3. Market interest rate

The market interest rate is the frame of reference to measure the coupon rate of bonds, and it is also the decisive factor to determine whether the bond price is issued at face value or at a premium and the at discount.

4. Term of bonds

The longer the term, the greater the risk of creditors, the higher the interest reward they demand and the lower the issue price.

Baidu Encyclopedia-Bond Issue Price