Chapter 4: Bonds and Bond Valuation

By the end of this chapter, students should be able to:

1. Explain what bonds are and the different types commonly issued.
2. Understand and calculate bond prices using present value concepts.
3. Compute yields, including current yield and yield to maturity.
4. Evaluate the effect of interest rate changes on bond prices.
5. Apply bond valuation to real-world corporate finance decisions, including raising capital and investing in government securities.