Fixed-Income Bond Valuation: Prices and Yields
Free CFA Level I lesson in Fixed Income. 11 min read, ~1,684 words.
Bond price = PV of coupons + PV of par, each discounted at the periodic YTM. Price and yield are inversely related and the curve is convex; equal-size yield moves produce unequal price changes. Coupon YTM = premium; coupon = YTM = par; coupon < YTM = discount. Longer maturity...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- bond valuation prices and yields
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