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Pricing Formulas

Understand the nature of the products and how they are priced.

The ways in which fixed income products are priced, or their yields calculated, differs. It is important to have a basic understanding of the key pricing methodologies for these products even though most investors will be able to use financial calculators provided on the web to calculate prices and yields.

Our RIMsec authorised representatives can also assist you in this area.

  • Key formulas
  • Simple interest on a deposit
  • Compound interest on a deposit
  • Price of a bank bill
  • Price of a Treasury note
  • Price of a short-term government bond with less than 6 months to maturity with the final coupon yet to be paid on the bond
  • Price of a Government bond with more than six months to maturity