JoVE Logo

Sign In

Chapter 12

Bonds - Concepts and Valuation

Bond Features and Prices
Bond Features and Prices
Bonds are debt securities, typically long-term, issued to raise capital. Examples include corporate bonds issued by companies or municipal bonds issued by ...
Valuation of Bonds
Valuation of Bonds
A bond's value is calculated as the present value of its future cash flows, which includes periodic coupon payments and the principal repayment, both ...
Determining a Bond's Present Value
Determining a Bond's Present Value
Valuation determines an asset's current value based on anticipated future benefits. In the case of bonds, valuation means determining their current ...
Calculating the Yield to Maturity
Calculating the Yield to Maturity
Yield to Maturity, or YTM, represents the total rate of return that an investor can expect if a bond is held until maturity. Computing the actual return ...
Risk in Bond Valuation
Risk in Bond Valuation
Bonds provide diversification and steady income to investors but carry various risks. Bonds carry common risks such as default, interest rate, liquidity, ...
The Bond Indenture
The Bond Indenture
A bond indenture is a legal contract between a bond issuer such as a corporation and bondholders, detailing the terms of the bond. Bond terms include face ...
Bond Ratings
Bond Ratings
Bond ratings evaluate the creditworthiness of a bond issuer and their likelihood of defaulting. Bond ratings are independent assessments that help ...
Bond Markets
Bond Markets
The bond market, or the debt or credit market, is where participants issue and trade debt securities like bonds. It has two key segments, made up of the ...
The Fisher Effect
The Fisher Effect
The Fisher Effect explains the relationship between nominal interest rates, real interest rates, and expected inflation. This concept helps investors ...
JoVE Logo

Privacy

Terms of Use

Policies

Research

Education

ABOUT JoVE

Copyright © 2025 MyJoVE Corporation. All rights reserved