Section 7f Callable Bond 深度剖析

1. 此文章仅为补充，请自行读了manual才看。

2. 若图片不清楚，请点击查看。

3. Manual 上面关于 Callable Bond 的题目严重不足够， 建议一定一定要做Sample Question, 以了解更多Callable Bond类型的题目。

Sample Question relate to Callable Bond:  54, 55, 56, 57, 91, 165, 166, 169, 172

不懂sample question是什么请参阅第二篇文章

Callable Bond💟

Briefing

请先确保你看了上一篇文章：专题二：Relation Between Bond Price & Interest

跟着Economic的原理，如果Price越高，Supply就会越高。

For 可以Call的bond:

当interest跌的时候，Bond Price就会提高，Seller (Bond Issuer) 乘机redeem(call)掉bond (Usually call at price more than or equal to Par)，然后出新的Higher Price Bond 来赚钱。

提醒：

Manual的讲解都使用 Premium/Discount formula 来做，但其实不需要，用普通的Bond Prices Formula 来做也可以。

补充研究 🥨

请确保你读完整个文章。

Things 4 的special case, 会在Practice Exam / Actex Practice Exam遇到。

Callable Bond Manual Solution 🧀

Question 1

Things 2: 因为(Call Price是C), 所以我们可以直接用 Premium 就是base on earliest redemption date的原则

Question 2

Question 3

Things 2: 因为(Call Price是C), 所以我们可以直接用 Discount 就是base on latest redemption date的原则.

Question 4

Question 5

Callable Bond Sample Question Solution 🧀

不懂sample question是什么请参阅第二篇文章

Sample Question 54

Same as ASM Manual Section 7f Question 1

Sample Question 55

Things 2: As Call Price not equal to C, better don't compare Fr and Ci to find it is premium or discount and base on earliest/latest redemption date. 

Find all date and find lowest price instead.

Sample Question 56

Things 2: 因为(Call Price是C), 所以我们可以直接用 Discount 就是base on latest redemption date的原则.

Sample Question 57

Things 5: If find minimum yield rate, then list all time and find minimum one, don't consider other issue like premium/discount.

Sample Question 91

Things 2: 因为(Call Price是C), 所以我们可以直接用 Discount 就是base on latest redemption date的原则.

Sample Question 165

Things 2: As Call Price not equal to C, better don't compare Fr and Ci to find it is premium or discount and base on earliest/latest redemption date. 

Find all date and find lowest price instead.

Sample Question 166

有点tricky, 不可以拿t=15, 因为last 5 coupon date start from 16.

Things 2: 因为(Call Price是C), 所以我们可以直接用 Premium 就是base on earliest redemption date的原则

Sample Question 169

Sample Question 172

Things 2: 因为Call Price = C, 我们可以用Premium base earliest/ Discount base latest的原则！ 

注意：因为题目写这个bond是more than 10 years的，所以我们只能从Premium(earliest)的角度来看先，因为Year 10(t=20), 不是latest redemption date , becoz bond is more than 10 years !!!