债券市场分析和策略第7版答案解析2.docVIP

专业文档 PAGE WORD资料可编辑 CHAPTER 2 PRICING OF BONDS CHAPTER SUMMARY This chapter will focus on the time value of money and how to calculate the price of a bond. When pricing a bond it is necessary to estimate the expected cash flows and determine the appropriate yield at which to discount the expected cash flows. Among other aspects of a bond, we will look at the reasons why the price of a bond changes REVIEW OF TIME VALUE OF MONEY Money has time value because of the opportunity to invest it at some interest rate. Future Value The future value of any sum of money invested today is: Pn = P0(1+r)n