Data: Work out the formula for bond price

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Trying to reverse engineer the bond prices from this page:

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

Tried using this bond calculator on the 2 year bond:
http://www.exceleverywhere.com/calculate/html/financial/Bond_Price_Calculator/Bo
nd_Price_Calculator.htm

With these inputs:
Face Value:100
Coupon rate: .125% (round to .13%)
Market rate: .26%
Maturity Period: 2 years

The calculator comes back with a bond price of 99.74 but bloomberg shows 
99-231/2.

Original issue reported on code.google.com by hastapas...@gmail.com on 20 Oct 2011 at 10:47

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Using this forumla from investopedia I get the result 99.73.

Here's the formula with the values plugged in:
.125 * (1 - [ 1 / (1+.0026) ^ 2])/.0026 + 100/(1 + .0026)^2

Original comment by hastapas...@gmail.com on 20 Oct 2011 at 11:18

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Should open a thread for this on The finance forums (www.thefinanceforums.com).

Original comment by hastapas...@gmail.com on 20 Oct 2011 at 11:21

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I opened a thread on thefinanceforums.com but I doubt I'll get any responses 
since I can publish the links (need to have at least 15 posts).

BTW, here's the link to the formula info on investopedia:
http://www.investopedia.com/university/advancedbond/advancedbond2.asp#axzz1bMm13
4i7

Original comment by hastapas...@gmail.com on 21 Oct 2011 at 1:54

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Maybe send an email to treasury direct or even bloomberg. Also might try motley 
fool forums.

Original comment by hastapas...@gmail.com on 21 Oct 2011 at 1:54

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Sent an email to bloomberg (using bloomberg feedback link: 
http://www.bloomberg.com/apps/feedback).

Also opened a job on elance.

Original comment by hastapas...@gmail.com on 12 Nov 2011 at 2:44

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Here's a source for italian bond prices:

http://borsaitaliana.it/borsa/obbligazioni/mot/btp/lista.html?lang=en&ord=date&m
od=up&ord=isin&mod=up&ord=anag&mod=up&ord=issuer&mod=up&ord=coupon&mod=up&ord=cu
rrency&mod=up

One issue is that I'm not sure which one to use for the benchmark. Also, prices 
aren't given for all of them.

Original comment by hastapas...@gmail.com on 12 Nov 2011 at 5:08

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Cross posting this from the Italian Bond thread:

I sent an email to wsj online asking if they provided quotes. 

Also, here's the information from my elance task. Link to italian borsa for BTP 
info:
http://www.borsaitaliana.it/borsa/obbligazioni/mot/btp/lista.html?lang=en

In general I need to figure out how benchmark bond info is calculated? Or is 
there any real standard way? 
If in 2010 a 10 year bond is issued with a 5% rate and then in 2015 a 10 year 
bond is issued with a 10% rate, both will initially have a price of par (100) 
but obviously the 2015 issue shows a much higher default risk.
Delete comment Comment 2 by project member hastapasta99, Today (13 minutes ago)
In order to do a true comparison you need an equivalent bond (we'll use 10 year 
as an example):

1) What would the rate be on a par bond issued today?
2) If there is no recent 10 year, then calculate it from an existing older bond 
(e.g. 20 or 30 year bond) that has matured to the point where it is a 10 year 
bond today.
3) Try to extrapolate it from the most recent 10 year auction and also from the 
rate trend on bonds of other duration (e.g. 8 year or 15 year bonds).

Original comment by hastapas...@gmail.com on 12 Dec 2011 at 8:55