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  2. Bond valuation - Wikipedia

    en.wikipedia.org/wiki/Bond_valuation

    Duration is a linear measure of how the price of a bond changes in response to interest rate changes. It is approximately equal to the percentage change in price for a given change in yield, and may be thought of as the elasticity of the bond's price with respect to discount rates. For example, for small interest rate changes, the duration is ...

  3. Duration (finance) - Wikipedia

    en.wikipedia.org/wiki/Duration_(finance)

    Duration is a linear measure of how the price of a bond changes in response to interest rate changes. As interest rates change, the price does not change linearly, but rather is a convex function of interest rates. Convexity is a measure of the curvature of how the price of a bond changes as the interest rate changes.

  4. Adjusted current yield - Wikipedia

    en.wikipedia.org/wiki/Adjusted_current_yield

    Here Face value is the face value of the bond, and Clean price is the clean price of the bond (i.e. present value of the bond with accrued interest subtracted). Formula for adjusted current yield [ edit ]

  5. The Relationship Between Bond Prices and Interest Rates - AOL

    www.aol.com/finance/relationship-between-bond...

    When considering bond prices, higher coupon rates, par values or periods to maturity will have higher prices. However, if a bond has a higher YTM, the bond price will be lower. Bond Prices vs ...

  6. Why do bond prices move up and down? 3 key reasons - AOL

    www.aol.com/finance/why-bond-prices-move-down...

    The calculation of bond prices due to the change in time to maturity can also be easily figured based on some relatively simple math, giving investors a clear idea of a bond’s expected price.

  7. Bond Price vs. Yield: Why The Difference Matters to Investors

    www.aol.com/bond-price-vs-yield-why-140036009.html

    The price you pay for a bond may be different from its face value, and will change over the life of the bond, depending on factors like the bond’s time to maturity and the interest rate environment.

  8. Bond convexity - Wikipedia

    en.wikipedia.org/wiki/Bond_convexity

    The more curved the price function of the bond is, the more inaccurate duration is as a measure of the interest rate sensitivity. [2] Convexity is a measure of the curvature or 2nd derivative of how the price of a bond varies with interest rate, i.e. how the duration of a bond changes as the interest rate changes. [3] Specifically, one assumes ...

  9. Yield to maturity - Wikipedia

    en.wikipedia.org/wiki/Yield_to_maturity

    The annual bond coupon should increase from $5 to $5.56 but the coupon can't change as only the bond price can change. So the bond is priced approximately at $100 - $0.56 or $99.44 . If the bond is held until maturity, the bond will pay $5 as interest and $100 par value for the matured bond.

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