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Bonds and their valuation

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BONDS AND THEIR VALUATION

Interpret and apply all bond terminology (i.e. par, maturity, coupon, price, yield, etc.)..

Explain the relationship between a bond’s price and its maturity..

Explain the relationship between a bond’s price and its yield..

Explain the relationship between prevailing interest rates and bond yields..

Explain and interpret bond credit ratings..

Explain the different types of bonds (i.e. treasuries, municipal bonds, CDO’s, indexed bonds, etc.)..

Calculate the tax equivalent yield for a municipal bond..

Interpret and explain bond spreads (price or yield) and how they change..

Reference no: EM131066386

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