Intermediate
Why bond prices move when yields change
A fixed payment becomes less valuable when investors require a higher return. Use a simple valuation to see why bond prices and yields move in opposite...
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Bonds Explained
Understand bond cash flows, compare yields and assess the risks behind a repayment promise. Follow six learning stages from the first bond contract to a complete investment research case.
Start with What a bond is and how you get paid, then follow the next lesson links. Explore 24 lessons with worked examples, exercises and further reading.
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Pricing and Yields · All lessons
Pricing and Yields
Connect cash flows with prices, yield measures and the yield curve.
Intermediate
Coupon rate current yield and yield to maturity
A coupon rate, current yield and yield to maturity answer different questions. Compare the cash payment, purchase price and complete repayment schedule.
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Intermediate
Yield to worst and reinvestment risk
A generous coupon can hide an unfavourable call. Compare redemption paths and follow what happens to coupons after they arrive.
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Intermediate
Reading the yield curve and credit spreads
The yield curve compares maturities. A credit spread compares a bond with a benchmark. Learn to read both without turning them into a certain economic forecast.
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