7.3 Fundamental Bond Pricing Properties

In this section

• 7.3.1 Price-Yield Relationship
  Understand the critical aspects of the price-yield relationship in bond markets, including the inverse relationship and the impact of duration.
• 7.3.2 Convexity
  A detailed exploration of convexity, an essential concept in bond pricing and portfolio management, illustrating its role in understanding the non-linear relationship between bond prices and yields, and its applications in managing interest rate risk.
• 7.3.3 Accrued Interest and Clean vs. Dirty Price
  Understanding the nuances of bond pricing including the calculation of accrued interest and the distinction between clean and dirty prices.