Bond Values • Bond values are discussed in one of two ways: – The dollar price – The yield to maturity • These two methods are equivalent since a price implies a yield, and vice-versa | CHAPTER SEVEN BOND ANALYSIS AND INVESTMENT 06 08 2011 1 Bond Values Bond values are discussed in one of two ways The dollar price The yield to maturity These two methods are equivalent since a price implies a yield and vice-versa 06 08 2011 2 Bond Yields There are several ways that we can describe the rate of return on a bond - Coupon rate Current yield Yield to maturity Modified yield to maturity Yield to call Realized Yield 06 08 2011
