Question 1

What is yield to use here?

Accepted Answer

The yield is the discount rate assumption. Some tools interpret it as yield to maturity, while others let you input a required return or market yield based on your context.

Question 2

Does this include credit risk or default probability?

Accepted Answer

No. This uses a yield discount model for pricing. Real-world credit risk affects the yield assumption and the likelihood of cash flow changes.

Question 3

Are coupon payments assumed to be exactly periodic?

Accepted Answer

Yes in this standard model. Actual bonds may have specific payment dates and day-count conventions.

Bond Calculator

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