Re: [Quantlib-users] Fixed rate bond

[Luigi B. <lui...@gm...>]

On Mon, Jan 9, 2012 at 11:59 PM, StephenWong <ste...@gm...> wrote:
> Dagur Gunnarsson-2 wrote:
>> Is there a simple way to simulate a bond(fixed rate) that pays a single
>> coupon on the maturity day as well as the principal
>
> Looks like you can do this with a combination of a fixed rate bond with
> regular coupon (at least once a year), then subtract that with a series of
> fixed rate bonds with the same coupon but shorter duration + a series of
> zero coupon bonds with the same maturities as the series of fixed rate bonds
> except the original bond. The combination would be what you want.

Or you could just use a fixed rate bond with all coupons except the
last paying a null rate, or you can create a schedule with null
frequency.  It depends on how the final payment accrues. Is the rate
accrued over the whole duration of the bond, or just a subperiod?

Luigi