L2 · Required

Bond prices and rates

Relate fixed cash flows to market rates.

What you should be able to do

Independently: Compare a one-period bond under two rate scenarios.

Suggested prerequisites

A short guide

Relate fixed cash flows to market rates. Compare a one-period bond under two rate scenarios. Read the indicated source section, identify its key concepts and conditions, and work through the example. Record inputs, sources, units and assumptions. Keep your method separate from the result, mark unanswered questions, and review the output against the checklist.

An example

A payment of 105 in one year at a 5% yield has a price of 100.

Your task

Compare a one-period bond under two rate scenarios.

Start with this source

Read the indicated section relevant to bond prices and rates and complete the applied task.

This source is awaiting renewed review. Try the task above and adjacent skills; reviewed sources will appear here.

Your learning checklist

Required items: 0 / 10 completed or already known

Device storage

Next: Read a role through its responsibilities

Checklist statuses are self-reported; exercise scores are recorded separately. You can reset any item.

Self-check

Try a practice set

Calculations and choices receive immediate checks. Review open responses yourself against the rubric. All examples are educational.

1. Buy 10 shares at 100 and sell at 105, ignoring fees. What is the profit?
2. What makes a market view more useful?
3. After the a market view task, state one assumption, one supporting fact and one condition that would change your conclusion.