10. Bonds and Bond Pricing
What you'll learn
- you will be able to calculate the purchase price of a bond
- you will be able to determine the amount of premium or discount on a bond
- you will be able to anticipate whether a bond should be sold at a premium or a discount
- you will be able to approximate the yield rate of return for a bond if you know the purchase price
- you will be able to determine the issue price of a bond to provide a given yield rate
- you will get a great set of base notes covering all of these topics on bond calculations.
Requirements
- you will need to have completed the Ordinary Simple Annuities course or understand the basic formulas of simple annuities
- you will need a scientific calculator or even better, a Business Financial calculator.
- bond pricing is dependent on the present value of both annuities and a single payment so your knowledge of compound interest and annuities is important for an understanding of bonds
Description
This course will introduce you to the principles behind the calculation of bond pricing. As you know, the purchase price of bonds fluctuates as market conditions change and with this course, you will see how the purchase price of a bond will change over time. You will be provided with a set of notes which you will use when you are watching the videotaped lectures.
The course will probably take 3-4 days to complete although this will vary for different students.
Who this course is for:
- students who are taking a mathematics of finance course
- students who are in a CFA program
- students in a Business Program
- students who are in need of an additional resource on the topic of bonds
Course content
- Preview9 pages
- Preview10:38
- Preview05:52
- 04:24Bonds - example 3
- 3 questionsbond interest payments and redemption value
- 08:40Bonds - example 4
- 05:07Bonds - example 5
- 3 questionsdetermining the purchase price of bonds
- Preview01:02
Instructor
![Helen Dakin](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 64 64"%3E%3C/svg%3E){kind=avatar}
- 4.4 Instructor Rating
- 52 Reviews
- 1,850 Students
- 10 Courses
Hi. I hold a 4 year Bachelor of Mathematics degree from the University of Waterloo and a B Ed (Honours) from the University of Western Ontario. While I have been trained as a high school mathematics educator, I have had the pleasure of teaching mathematics at the post secondary level for four community colleges in southern Ontario. When I am not teaching, I like to fool around with my camera, muck about in the garden, read a good book and sail around in a boat. Not necessarily in that order.
Feel free to browse through all of my Udemy courses on Mathematics of Finance. There are many links to be able to have limited view of some videos and/or notes for most of the courses. This will enable you to have a sneak preview of what you can expect and whether my materials will be of benefit to you. I have listed the courses by number sequencing the order that they should be taken in, however, if you have prior knowledge or experience with simple and compound interest, then you can jump right into the annuities and annuity applications courses. The content covered is closely matched to what is taught at the community college level but is also valuable to those who are interested in financial mathematics.
While much material can be found on YouTube, the topics are consolidated and better organized in this Udemy course format.