Bond and Stock Valuation Concepts
Free CFP Exam lesson in Investment Planning. 14 min read, ~2,159 words.
Bond prices and interest rates always move inversely, this is mathematical, not opinion. Modified duration = Macaulay duration / (1 + YTM); multiply by yield change for price impact. Discount bond: Coupon < Current Yield < YTM. Premium bond: Coupon Current Yield YTM. Gordon Growth Model: Price = D1 /...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- D.32
Browse all free CFP lessons or jump into free CFP practice questions.