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How do you find the value of a bond, and why do bond prices change? What is a bond indenture, and what are some of

How do you find the value of a bond, and why do bond prices change?

What is a bond indenture, and what are some of the important features?

What are bond ratings, and why are they important?

How does inflation affect interest rates?

What is the term structure of interest rates?

What factors determine the required return on bonds?

Ehtical issues

In 1996, allegations were made against Moody's that it was issuing ratings on bonds it had not been hired to rate, in order to pressure issuers to pay for their service.

The government conducted an inquiry, but charges of antitrust violations were dropped. Even though no legal action was taken, does an ethical issue exist?

Comprehensive problem.

What is the price of a $1,000 par value bond with a 6% coupon rate paid semiannually, if the bond is priced to yield 5% and it has 9 years to maturity?

What would be the price of the bond if the yield rose to 7%.

What is the current yield on the bond if the YTM is 7%?

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