Accrued Interest and Dollar Prices

This chapter being towards finding Dollar Prices from specified YTM values. Using computation of the Dollar Price of any bond from its yield‐to‐maturity (YTM) and finding YTM with the Dollar Price on a trial and error basis with discount rates. Accrued Interest (AI) multiplied by the coupon payment 5C. AI prevents the bond's total realizable value as a measure of the bond's capital value as market values are in terms of Principal Value alone without AI. Bond markets by using linear interpolation on Dollar Prices of bonds can determine the Dollar Price and its YTM for any bond on any delivery date.