I'm not 100% sure but I think it would look something like
def maturity_formula(C, P, r):
return sum([C / (1 + r) ^ t + F / (1 + r) ^ n for t in range(1, n+1)])
On Fri, Apr 3, 2009 at 8:54 PM, Brian <medo...@gmail.com> wrote:
>
> I was hoping to get help with using SAGE to plot this equation:
> http://www.streetauthority.com/images/education/ytm.gif
>
> This is the yield to maturity formula, expressing that a bond's price
> is the sum of the present values of its future cash flows.
>
> P = price of the bond
> n = number of periods
> C = coupon payment
> r = required rate of return on this investment
> F = maturity value
> t = time period when payment is to be received
>
> All variables are fixed except P and r, so my plot will be the
> function P(r).
>
> Once this is working, my next goal is to unfix n and have it vary on
> the z axis.
>
> A more basic question that could get me started is, how do I express
> that summation?
>
> Thanks, Brian
>
> (Source: http://www.streetauthority.com/terms/y/yield-to-maturity.asp)
> >
>
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