 Bond Price and YieldEnzo Mondello
Chapter 11 in Applied Fundamentals in Finance, 2023, pp 367-411 from Springer Abstract: Abstract Bonds belong to the traditional asset classes together with equity securities. These are interest-bearing securities that are securitised and thus tradable. The global bond market is large and diverse and offers important investment opportunities, especially for institutional investors. Its importance can also be seen in the fact that bond markets are larger than equity markets worldwide. In contrast to equity securities, the majority of fixed-income securities are traded over the counter. An understanding of bonds is useful as these securities increase the universe of investments available to create a diversified portfolio. The chapter first deals with the basics and the various types of bonds, followed by the pricing of option-free bonds with the cash flow model. In addition to the pricing of fixed-rate bonds, the pricing of floating-rate bonds is also examined. The chapter concludes with a discussion of the three yield measures of current yield, yield to maturity, and total return, which allow investors to assess the return on their investment in fixed-rate option-free bonds. Date: 2023 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-658-41021-6_11 Ordering information: This item can be ordered from DOI: 10.1007/978-3-658-41021-6_11 Access Statistics for this chapter More chapters in Springer Texts in Business and Economics from Springer |
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