5. Bond Valuation Flashcards

1
Q

What’s the difference between bond vs. money market?

A
  • Bonds: long term (>1 yr)

- Money market: short term (<1 yr)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Formulas: valuation of bond

  • Zero-coupon bond
  • Coupon bond
A
  • See notes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Draw yield curve

A

See notes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly