Slide 1Bond Prices and Yields CHAPTER 10 Slide 2 10-2 Discuss different characteristics in bond contracts (some content was discussed in Ch 2) Review the pricing of bonds…

1. CHAPTER TWENTY-TWO BOND PORTFOLIO MANAGEMENT 1 2. BOND PORTOLIOS • METHODS OF MANAGEMENT – Passive • restson the belief that bond markets are semi-strong efficient…

Bond Durations (Yield to Maturity = 8% APR; Semiannual Coupons) BKM 16.* Duration is Additive The duration of a portfolio of securities is the weighted average of the durations…

CHAPTER 4 CHAPTER 4 BOND PRICE VOLATILITY CHAPTER SUMMARY To use effective bond portfolio strategies, it is necessary to understand the price volatility of bonds resulting…

Slide 1 Fixed Income - 1 http://www.tfii.org The Financial Institute of Israel Zvi Wiener 02-588-3049 [email protected] Fixed Income Slide 2 Zvi WienerFI - 1 slide…

Slide 1 Http:\\www.tfii.org 1 Zvi Wiener Fixed Income Slide 2 Http:\\www.tfii.org 2 Plan Pricing of Bonds Measuring yield Bond Price Volatility Factors Affecting Yields and…

Chapter 4 Bond Price Volatility © 2013 Pearson Education, Inc. 4-2 Learning Objectives After reading this chapter, you will understand  the price-yield relationship of…

Chapter 4  Bond Price Volatility Learning Objectives After reading this chapter, you will understand the price-yield relationship of an option-free bond the factors that…

Slide 1 Chapter 18 FIXED-INCOME ANALYSIS Slide 2 Chapter 18 Questions How is the value of a bond determined, based on the present value formula? What alternative bond yields…

Chapter 4 Bond Price Volatility Chapter Pages 58-85,89-91 Introduction Bond volatility is a result of interest rate volatility: When interest rates go up bond prices go down…