2.2 Bond Pricing Fundamentals

In this section

• Calculating the Price of a Bond
  Use bond cash flows and discount rates to calculate fair value for fixed income securities.
• Bond Prices and Yields
  Understand the inverse relationship between bond prices and yields and why it drives fixed income valuation.
• Accrued Interest, Clean Prices, and Dirty Prices
  Review bond pricing conventions and see how accrued interest separates clean prices from dirty prices.