Back to Basics

Bonds usually start their life at, or close to, a price of 100 and at maturity they usually finish at a price of 100 as well. However, during a bond's life the price increases and decreases in accordance with the yield that the bond delivers to its investors. To price a bond you need to know a minimum of three pieces of information: interest paid by the bond (coupon); yield to maturity; time to maturity.

A bond's price is simply today's value of each of the interest payments and the final val

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: