Explore the essential bond terminology crucial for understanding the dynamics of bonds and debt securities, including face value, coupon rate, maturity date, and their impact on pricing and investor returns.
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.
Explore the concept of convexity in bond pricing, its importance, calculation, and role in bond portfolio management. Learn how convexity enhances duration-based estimates and provides better price sensitivity analysis.