Bullet Bond

Overview


The standard fixed instrument, a bond, pays only interest each period until the maturity, at which point, it pays both interest and the entire principal. This is called a bullet bond.

Calculating Bullet Payments


Bullet : a bullet bond pays fixed interest payments on each pay date, and pays back the full principal on the last pay date. Interest is quoted as an annual rate. Each payment is the 


let pd = await import('/lib/finance/fixed-income/v1.0.0/pay-dates.mjs');

let principal = 100;
let rate = 0.1;
let period = 2;

let dates = pd.dates('2000-01-15', 12, period, true);
let payments = dates.map(p=>({
  date:p,
  "pay-date":pd.dateRoll(p, 'following', pd.days.weekdays),
  payment:principal*rate/period
}));
Try it!

Using the Payments API


Payments Library 


let pm = await import('/lib/finance/fixed-income/v1.0.0/payments.mjs');

let principal = 100;
let rate = 0.1;
let period = 2;

let payments = pm.bullet('2000-01-15', principal, rate, period);
Try it!