OpenSourceOptimist on Nostr: This was unexpectedly fun to think about. I have no finance knowledge only maths ...

This was unexpectedly fun to think about.

I have no finance knowledge only maths knowledge.

They way I would tackle the issue would be to start with calculating the value of the bond at the start of they day.

Then identifying the important changes.

1. The riskyness change. 6% to 12% return to take on the risk.

2. The increased time until I get the coupons.

Then calculate the value after those changes.