Description
Calculate a bond premium or discount amount from a price quoted per hundred face value.
Financial bookkeeping uses explicit invoice, credit, withholding, day-count and quote bases. A supplied deduction or rate defines an arithmetic scenario without determining actual contractual or tax rights. Discount reference shifts and prices per hundred face value need their own direction and unit conventions.
Calculate a bond premium or discount amount from a price quoted per hundred face value.
When to use this tool
Use Bond Premium Price Point Contribution when checking the stated caller-defined balance, rate, accrual or quote convention.
How to use the tool and how it works
- Enter pricePerHundred, faceAmount. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read premiumAmount. Use the output convention below.
Require pricePerHundred/faceAmount>=0. Return (pricePerHundred/100-1)*faceAmount as signed premiumAmount.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| pricePerHundred | Price points per 100 face-value units; 100 means par. | Required. Finite number; minimum 0. |
| faceAmount | Face Amount | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| premiumAmount | Signed amount above par, negative for a discount; excludes accrued interest and fees. | Required. Finite number. |
{
"input": {
"pricePerHundred": 105,
"faceAmount": 1000
},
"output": {
"premiumAmount": 50.00000000000004
}
}Limitations and assumptions
- A quote below 100 produces a discount; no accrued interest, fees, tax treatment, actual bond valuation or investment recommendation is included.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Review verified transaction and contract records and current applicable rules with qualified financial/tax/legal professionals for actual settlement or investment decisions.
References
Similar or alternative tools
- Bond Quote Clean Dirty Convention Tag
Attach a clean/dirty convention label to a bond quote.
- Implied Spread Price Increment
Estimate a linear price change from a supplied spread-duration sensitivity.