Case Study

Case Study 1: How can users calculate the price of a floating-rate bond?

1. Go to Bonds → Valuation. Enter the bond code you want to analyze (e.g., VBA12001). The Cash Flow Scenario table will display all future cash flows of that bond.

• This bond is a fully floating-rate bond, with benchmarks tracked daily by FiinGroup.

• The Bond Portal provides nearly 30 different benchmarks for users to choose from.

Advanced functions:

• From the selected benchmark, the system generates discounted future cash flows based on the trade date (which can be adjusted by changing the input date).

• Users can manually adjust coupon rates in future years to see how subsequent cash flows change.

• If the issuer executes a bond buyback, users can remove corresponding future cash flows. The system will automatically recalculate and update YTM, Clean Price, and Dirty Price.

2. After editing, users can save the scenario with a custom name for easy retrieval and comparison later.