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FOR FINANCE CHAPTER 5 Valuation of bonds Relationship between interest rates and bond prices Interest rate risk (price risk and reinvestment risk) Term structure of

FOR FINANCE CHAPTER 5

Valuation of bonds

Relationship between interest rates and bond prices

Interest rate risk (price risk and reinvestment risk)

Term structure of interest rates (what causes interest rates to vary among maturities)

Yield to maturity (YTM), current yield, and holding period yield

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