Bond Valuation

1. Terminology
1. Par Value
2. Coupon Interest Rate
3. Maturity Date
4. Call Provisions
5. New vs. Seasoned issues
6. Promised Yield
2. Basic Bond Valuation Model
3. Changes in Bond Valuation Over Time
1. Price Risk
2. Coupon Reinvestment Risk
3. Promised Yield (ex-ante) vs. Realized Yield (ex-post)
4. Finding the Promised Yield on a Bond
5. Bond Values with Semiannual Compounding
6. Bond Yields and Bond Markets