1 debt valuation topic #2. 2 context complete markets bonds time value of money bond valuation...
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Moving cash in time
Compare cash only at the same point in time Future Value
Compounding Present Value
Discounting NPV
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Bond Terminology
Maturity date Term Face value Coupons and coupon payments Zero-coupon bond Yield to Maturity
Risk-free interest rate Spot rates
Yield curve
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Bond Valuation
Yield to Maturity of a Coupon Bond Price given YTM Time and bond prices Interest rate changes and bond prices
Interest rate sensitivity of bond prices Duration