4.2 Bond Pricing and Yields

In this section

• Yield to Maturity Calculations: Understanding and Calculating YTM for Bonds
  Explore the concept of Yield to Maturity (YTM), its calculation methods, influencing factors, and its significance in bond investment analysis.
• Yield Measures for Bonds with Embedded Options: Understanding Callable and Putable Bonds
  Explore the intricacies of yield measures for bonds with embedded options, including callable and putable bonds, and understand their impact on investment decisions.
• Present Value and Discounting: Understanding Bond Pricing and Discounting Future Cash Flows
  Explore the concepts of present value and discounting in bond pricing, including the process of discounting future cash flows, the relationship between discount rates and bond prices, and detailed bond pricing calculations using present value formulas.
• Yield Curves and Term Structure: Understanding the Dynamics of Interest Rates
  Explore the intricacies of yield curves and term structures, their shapes, theories, and implications for investors in the Canadian Securities Course.
• Accrued Interest and Settlement in Bond Transactions
  Explore the intricacies of accrued interest, clean and dirty prices, and settlement conventions in bond transactions.