Bond Pricing and Interest Rates
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This paper gives a simple explanation of the effects of interest rates on bond prices. This includes an examination of premiums, discounts and the yield curve. The effect of the amount of premiums compared with face value is also explored.
From the Paper:"The simple and basic answer to the question 'What is the relationship between interest rates and bond prices?' is simple. The relationship is inverse. What this project will attempt to do is demonstrate why this is true and what elements complicate the question. Yield to Maturity: There are two yields related to any bond the coupon rate and the yield to maturity. The coupon rate is stated rate of..."
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Bond Pricing and Interest Rates (2008, December 01) Retrieved December 02, 2021, from https://www.academon.com/term-paper/bond-pricing-and-interest-rates-122395/
"Bond Pricing and Interest Rates" 01 December 2008. Web. 02 December. 2021. <https://www.academon.com/term-paper/bond-pricing-and-interest-rates-122395/>