tailieunhanh - Slides_Fundamentals of Investments - Chapter 10

Chapter 10 Bond Prices and Yields Goal Our goal in this chapter is to understand the relationship between bond prices and yields, and to examine some of the fundamental tools of bond risk analysis used by fixed-income portfolio managers. | 0 C h a p t e r Bond Prices and Yields Fundamentals of Investments Valuation Management second edition Charles J. Corrado Bradford D. Jordan McGraw HillzIrwin Slides by Yee-Tien Ted Fu 10-2 Bond Prices and Yields Goal Our goal in this chapter is to understand the relationship between bond prices and yields and to examine some of the fundamental tools of bond risk analysis used by fixed-income portfolio managers. McGraw Hill Irwin 2002 by The McGraw-Hill Companies Inc. All rights reserved. 10 -3 Bond Basics Straight bond An IOU that obligates the issuer to pay to the bondholder a fixed sum of money called the principal par value or face value at the bond s maturity along with constant periodic interest payments called coupons during the life of the bond. . Treasury bonds are straight bonds. Special features may be attached creating convertible bonds putable bonds etc. McGraw Hill Irwin 2002 by The McGraw-Hill Companies Inc. All rights .