Can you help me with this - ? I need to share a view on this conclusion. Are there any other factors that you can offer that may explain why the bond is selling at a premium or discount?

http://finra-markets.morningstar.com/BondCenter/Screener.jsp

I used Columbia Univ Trustees N Y bond for this discussion, with a symbol of CUT3853608:

Coupon rate: 3.827%

Maturity date: 10/01/2042

Payment Frequency: Semi-Annual

Day Count: 30/360

Par Value = $1, 000

R = 0.025

M = 15*2 = 30

PV = $1, 000(0.03827) = 38.27/2 = 19.135 coupon

PV = (coupon*((1-(1/(1 + r)^m))/r))+(par value/(1 + r)^m)

PV = (19.135*((1-(1/(1+0.025)^30))/(0.025))+(1000/(1+0.25)^30)

PV = (19.135*((1-(1/(1.025)^30))/(0.025))+(1000/(1.025)^30)

PV = (19.135*((1-(1/(2.09757))/0.025)) + (1000/(1.025)^30)

PV = (19.135*((1-0.4767))/0.025)) + (1000/2.09757)

PV = (19.135*20.932) + 476.74

PV = 877.27

The bond is selling at discount because it is calculated at $877.27, that is less than face value $1000. In addition, time and inflation may influence the value of a bond until maturity.

azzid2