Re: minor extension of the FixedCouponBond class...

Posted by Ferdinando Ametrano-4 on
URL: http://quantlib.414.s1.nabble.com/minor-extension-of-the-FixedCouponBond-class-tp10820p10823.html

Luigi Ballabio wrote:
>
> Also, I think there's another convention in the case of seasoned bonds:  
> if the notional has been partly amortized (e.g., the current notional  
> is 85 with respect to the initial 100) the price should be rescaled so  
> that it is always in base 100 (e.g., multiplied by 100/85.)

not completly true. It depends on the bond and/or exchange, and I've see
both possible cases for sinkable bonds:
a) nominal bond price stays at the 100 level, it's the nominal amount in
your portfolio that decrease by 15%
b) nominal bond value goes to 85, and the nominal amount stay fixed.

ciao -- Nando