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A bond is a fixed-income instrument generating cash flows at some specific dates in the futures. These cash-flows depend on the interest rate of the bond, which can either be fixed or variable. It is a debt instrument acting as a loan made from the buyer to the seller.
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Computing Yield of a Sonia Bond
How to compute yield from the price for a sonia bond. Example XS 1848770407 issued by ecB maturity 29th June 2023. semi annual cpn. Floating base SONIA compound +35 Bp. …