April 2015
Intermediate to advanced
340 pages
7h 21m
English
Content preview from Mastering Python for Finance
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Pricing a callable bond option
In this section, we will take a look at pricing a callable bond. We assume that the bond to be priced is a zero-coupon paying bond with an embedded European call option. The price of a callable bond can be thought of as:
Pricing a zero-coupon bond by the Vasicek model
The value of a zero-coupon bond with a par value of 1 at time 
and prevailing interest rate 
is defined as:
Since the interest rate is always changing, we ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.