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1. Boundless Lecture Slides Available on the Boundless Teaching Platform Free to share, print, make copies and changes. Get yours at www.boundless.com

2. Using Boundless Presentations Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: • The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. http://boundless.com/teaching-platform • Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. If you have any questions or problems please email: educators@boundless.com Free to share, print, make copies and changes. Get yours at www.boundless.com

3. About Boundless • Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the world’s best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the company’s wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com. Free to share, print, make copies and changes. Get yours at www.boundless.com

4. The Basics of Interest Rates Bond Valuation Additional Detail on Interest Rates Key Characteristics of Bonds Understanding Bonds ] Advantages and Disadvantages of Bonds Bond Valuation Free to share, print, make copies and changes. Get yours at www.boundless.com

5. Types of Bonds Bond Valuation(continued) Bond Markets Valuing Bonds Bond Risk ] Bond Valuation Free to share, print, make copies and changes. Get yours at www.boundless.com

6. Bond Valuation > The Basics of Interest Rates The Basics of Interest Rates • Understanding the Cost of Money • Interest Rate Levels • Drivers of Market Interest Rates • The Term Structure Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/the-basics-of-interest-rates-61/

7. Bond Valuation > Additional Detail on Interest Rates Additional Detail on Interest Rates • The Yield Curve • Using the Yield Curve to Estimate Interest Rates in the Future • Macroeconomic Factors Influencing the Interest Rate Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/additional-detail-on-interest-rates-62/

8. Bond Valuation > Key Characteristics of Bonds Key Characteristics of Bonds • Par Value • Coupon Interest Rate • Maturity Date • Call Provisions • Sinking Funds • Other Features Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/key-characteristics-of-bonds-63/

9. Bond Valuation > Understanding Bonds Understanding Bonds • The Nature of Bonds • Duration • Indenture • Ratings Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/understanding-bonds-64/

10. Bond Valuation > Advantages and Disadvantages of Bonds Advantages and Disadvantages of Bonds • Advantages of Bonds • Disadvantages of Bonds Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/advantages-and-disadvantages-of-bonds-65/

11. Bond Valuation > Types of Bonds Types of Bonds • Government Bonds • Zero-Coupon Bonds • Floating-Rate Bonds • Other Types of Bonds Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/types-of-bonds-66/

12. Bond Valuation > Bond Markets Bond Markets • Purchase Process • Price Transparency Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/bond-markets-67/

13. Bond Valuation > Valuing Bonds Valuing Bonds • Present Value of Payments • Par Value at Maturity • Yield to Maturity • Inflation Premium • Differences Between Real and Nominal Rates • Time to Maturity • Calculating Yield to Maturity Using the Bond Price • Impact of Payment Frequency on Bond Prices • Deciding to Refund Bonds Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/valuing-bonds-68/

14. Bond Valuation > Bond Risk Bond Risk • Price Risk • Reinvestment Risk • Comparing Price Risk and Reinvestment Risk • Default Risk • Bond Rating System • Bankruptcy and Bond Value Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/finance/textbooks/boundless-finance-textbook/bond-valuation-6/bond-risk-69/

15. Appendix Free to share, print, make copies and changes. Get yours at www.boundless.com

16. Bond Valuation Key terms • abscondTo flee; to withdraw from. • annuityA specified income payable at stated intervals for a fixed or a contingent period, often for the recipient's life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment. For example, a retirement annuity paid to a public officer following his or her retirement. • asset-backed securitiesAn asset-backed security is a security that has value and income payments derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets that are unable to be sold individually. • bond fundsA bond fund or debt fund is a fund that invests in bonds or other debt securities. Bond funds can be contrasted with stock funds and money funds. • call premiumthe additional cost paid by the issuer for the right to buy back the bond at a predtermined price at a certain time in the future • call provisionthe right for the issuer to buy back the bond at a predetermined price at a certain time in future • callableA callable bond (also called "redeemable bond") is a type of bond (debt security) that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. • clean pricethe price of a bond excluding any interest that has accrued since issue or the most recent coupon payment. • convertibilityQuality of a bond that allows the holder to convert into shares of common stock in the issuing company or cash of equal value, at an agreed-upon price. • Convertible bondsA convertible bond is a type of bond that the holder can convert into shares of common stock in the issuing company or cash of equal value, at an agreed-upon price. • ConvexityAs interest rates change, the price does not change linearly, but rather is a convex function of interest rates. Convexity is a measure of the curvature of how the price of a bond changes as the interest rate changes. Specifically, duration can be formulated as the first derivative of the price function of the bond with respect to the interest rate in question, and the convexity as the second derivative. • corporate bondsA corporate bond is a bond issue by a corporation. It is a bond that a corporation issues to raise money effectively in order to expand its business. Free to share, print, make copies and changes. Get yours at www.boundless.com

17. Bond Valuation • credit rating agenciesA credit rating agency (CRA) is a company that assigns credit ratings to issuers of certain types of debt obligations, as well as to the debt instruments themselves. • debenturesA debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. • discount rateThe interest rate used to discount future cash flows of a financial instrument; the annual interest rate used to decrease the amounts of future cash flow to yield their present value. • discount rateThe interest rate used to discount future cash flows of a financial instrument; the annual interest rate used to decrease the amounts of future cash flow to yield their present value. • durationA measure of the sensitivity of the price of a financial asset to changes in interest rates, computed for a simple bond as a weighted average of the maturities of the interest and principal payments associated with it • durationA measure of the sensitivity of the price of a financial asset to changes in interest rates, computed for a simple bond as a weighted average of the maturities of the interest and principal payments associated with it • durationA measure of the sensitivity of the price of a financial asset to changes in interest rates, computed for a simple bond as a weighted average of the maturities of the interest and principal payments associated with it • Exchange rate riskThe exchange rate risk is a financial risk posed by an exposure to unanticipated changes in the exchange rate between two currencies. • floating-rate bonda debt instruments with a variable coupon • gross domestic productA measure of the economic production of a particular territory in financial capital terms over a specific time period. • hedge fundsAn investment fund that can undertake a wider range of investment and trading activities than other funds, but which is generally only open to certain types of investors specified by regulators. • immunizeIn finance, interest rate immunization is a strategy that ensures that a change in interest rates will not affect the value of a portfolio. Similarly, immunization can be used to ensure that the value of a pension fund's or a firm's assets will increase or decrease in exactly the opposite amount of their liabilities, thus leaving the value of the pension fund's surplus or firm's equity unchanged, regardless of changes in the interest rate. Free to share, print, make copies and changes. Get yours at www.boundless.com

18. Bond Valuation • indenturea document, written as duplicates separated by indentations, specifying such a contract • inflationAn increase in the general level of prices or in the cost of living. • inflation-linked bondsInflation-indexed bonds (also known as inflation-linked bonds or colloquially as linkers) are bonds where the principal is indexed to inflation. They are thus designed to cut out the inflation risk of an investment. • inflation-linked bondsInflation-indexed bonds (also known as inflation-linked bonds or colloquially as linkers) are bonds where the principal is indexed to inflation. They are thus designed to cut out the inflation risk of an investment. • inflationary gapAn inflationary gap, in economics, is the amount by which the real gross domestic product, or real GDP, exceeds potential GDP. • insolventUnable to pay one's bills as they fall due. • interest rateThe percentage of an amount of money charged for its use per some period of time. It can also be thought of as the cost of not having money for one period, or the amount paid on an investment per year. • interest rate riskthe potential for loss that arises for bond owners from fluctuating interest rates • internal rate of returnIRR. The rate of return on an investment which causes the net present value of all future cash flows to be zero. • LIBORThe London Interbank Offered Rate is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. • LIBORThe London Interbank Offered Rate is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. • liquidatedIn law, liquidation is the process by which a company (or part of a company) is brought to an end and the assets and property of the company redistributed. Free to share, print, make copies and changes. Get yours at www.boundless.com

19. Bond Valuation • liquidationThe selling of the assets of a business as part of the process of dissolving the business. • liquidityAvailability of cash over short term: ability to service short-term debt. • Liquidity premiumLiquidity premium is a term used to explain a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. • market liquidityIn business, economics or investment, market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value. • monetary policyThe process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. • money marketA market for trading short-term debt instruments, such as treasury bills, commercial paper, bankers' acceptances, and certificates of deposit • municipal bondsA municipal bond is a bond issued by an American city or other local government, or their agencies. • mutual fundsA type of professionally-managed collective investment vehicle that pools money from many investors to purchase securities. While there is no legal definition, the term is most commonly applied only to those collective investment vehicles that are regulated, available to the general public and open-ended in nature. • Opportunity costThe cost of an opportunity forgone (and the loss of the benefits that could be received from that opportunity); the most valuable forgone alternative. • parEqual value; equality of nominal and actual value; the value expressed on the face or in the words of a certificate of value, as a bond or other commercial paper. • par valuethe stated value or amount of a bill or a note • Pension fundsA pension fund is any plan, fund, or scheme which provides retirement income. Free to share, print, make copies and changes. Get yours at www.boundless.com

20. Bond Valuation • Pension fundsAny plan, fund, or scheme which provides retirement income. • Preferred StockStock with a dividend, usually fixed, that is paid out of profits before any dividend can be paid on common stock. It also has priority to common stock in liquidation. • premiumthe price above par value at which a security is sold • premium bonda debt instrument bought at a price above par value • public debt offeringsA public debt offering is the offering of debt securities of a government, a company or a similar corporation to the public. • purchasing powerPurchasing power (sometimes retroactively called adjusted for inflation) is the amount of goods or services that can be purchased with a unit of currency. • purchasing powerPurchasing power (sometimes retroactively called adjusted for inflation) is the amount of goods or services that can be purchased with a unit of currency. • purchasing power paritya theory of long-term equilibrium exchange rates based on relative price levels of two countries • puttablePuttable bond (put bond, putable, or retractable bond) is a bond with an embedded put option. The holder of the puttable bond has the right, but not the obligation, to demand early repayment of the principal. • quoteTo name the current price, notably of a financial security. • Real interest rateThe "real interest rate" is the rate of interest an investor expects to receive after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate. • recapitalizationA restructuring of a company's mixture of equity and debt. Free to share, print, make copies and changes. Get yours at www.boundless.com

21. Bond Valuation • Recessionary gapAn inflationary gap, in economics, is the amount by which the real Gross domestic product, or real GDP, is less than the potential GDP. • recessionsDownturns in a given economic environment. • Reinvestment riskThe reinvestment risk is the possibility that the investor might be forced to find a new place for his money. As a consequence, the investor might not be able to find as good a deal, especially because this usually happens when interest rates are falling. • resale marketThe resale market, also called "secondary market" or "aftermarket," is the financial market in which previously issued financial instruments, such as stock, bonds, options, and futures, are bought and sold. • risk premiumA risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset, or the expected return on a less risky asset, in order to induce an individual to hold the risky asset rather than the risk-free asset. • sinking fundA sinking fund is a fund established by a government agency or business for the purpose of reducing debt by repaying or purchasing outstanding loans and securities held against the entity. It helps keep the borrower liquid so it can repay the bondholder. • straight bondA straight bond is a bond with no embedded options (call or put options). • systematic risksIn finance and economics, systematic risk (sometimes called aggregate risk, market risk, or undiversifiable risk) is vulnerability to events which affect aggregate outcomes such as broad market returns, total economy-wide resource holdings, or aggregate income. • term structure of interest ratesthe relationship between the interest on a debt contract and the maturity of the contract • time value of moneyThe value of money, figuring in a given amount of interest, earned over a given amount of time. • tranchesOne of a number of related securities offered as part of the same transaction. • transparency(figuratively) openness, degree of accessibility to view Free to share, print, make copies and changes. Get yours at www.boundless.com

22. Bond Valuation • treasury billA United States Treasury security is a government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the United States federal government. They are often referred to simply as treasuries. There are four types of marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS), in which Treasury bills have the shortest maturity of one year or less. • Treasury bondA United States Treasury security is a government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the United States federal government, and they are often referred to simply as Treasuries. There are four types of marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS), in which Treasury bonds have the longest maturity, from 20 years to 30 years. • Treasury bondsA United States Treasury bond is a government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt, with a maturity of 20 years to 30 years. • yield curveA curve that shows the compounded interest rate applied to the value of the security over its lifetime. • yield curvethe graph of the relationship between the interest on a debt contract and the maturity of the contract • Yield to maturityThe internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest. • Yield to maturityThe yield to maturity (YTM) of a bond or other fixed-interest security, such as gilts, is the internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity and that all coupon and principal payments will be made on schedule. • Yield to maturityThe Yield to maturity (YTM) or redemption yield of a bond or other fixed-interest security, such as gilts, is the internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity, and that all coupon and principal payments will be made on schedule. • Zero coupon bondsA zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. Free to share, print, make copies and changes. Get yours at www.boundless.com

23. Bond Valuation Bond price formula Bond price is the present value of all coupon payments and the face value paid at maturity. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Bond pricing."GNU FDLhttp://en.wikipedia.org/wiki/Bond_pricingView on Boundless.com

24. Bond Valuation Worldwide Inflation Rates 2009 World map showing inflation rate by country. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Inflation rate world."GNU FDLhttp://commons.wikimedia.org/wiki/File:Inflation_rate_world.PNGView on Boundless.com

25. Bond Valuation Bankruptcy Courthouse Old U.S. Post Office and Court House, now used by the U.S. Bankruptcy Court for the Northern District of Florida. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Tallahassee FL Bankruptcy Courthouse01."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Tallahassee_FL_Bankruptcy_Courthouse01.jpgView on Boundless.com

26. Bond Valuation Austrian war bond The first Austrian bonds had 5% rates of return and a five-year maturity. Free to share, print, make copies and changes. Get yours at www.boundless.com Europeana."Austrian War Bond, item 1."CC BYhttp://www.europeana.eu/portal/record/2020601/8152CB363F4F5FCADA898EAB48D93D74AE9D8B41.html?start=5&query=bond+AND+europeana_rights:*creative*+AND+NOT+europeana_rights:*nc*+AND+NOT+europeana_rights:*nd*View on Boundless.com

27. Bond Valuation Farm bond One purpose of a sinking fund is to repurchase outstanding bonds. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Farm bond."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Farm_bond.jpgView on Boundless.com

28. Bond Valuation Prices of sovereign credit default swaps Credit default swaps are an instrument to protect against default risk. This image shows the monthly prices of sovereign credit default swaps from January 2010 till September 2011 of Greece, Portugal, Ireland, Hungary, Italy, Spain, Belgium, France, Germany, and the UK (Greece is illustrated by blue line). Higher credit default swap prices mean that investors perceive a higher risk of default. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia.CC BY-SAhttp://upload.wikimedia.org/wikipedia/commons/7/78/Sovereign_credit_default_swaps.pngView on Boundless.com

29. Bond Valuation USD Yield Curve 2005 USD yield curve Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia.CC BY-SAhttp://upload.wikimedia.org/wikipedia/commons/thumb/1/18/USD_yield_curve_09_02_2005.JPG/800px-USD_yield_curve_09_02_2005.JPGView on Boundless.com

30. Bond Valuation Money market interest rates Interest rates of one-month maturity of German banks from 1967 to 2003 Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."German bank interest rates from 1967 to 2003 grid."CC BY-SAhttp://commons.wikimedia.org/wiki/File:German_bank_interest_rates_from_1967_to_2003_grid.svgView on Boundless.com

31. Bond Valuation Mecca Temple 1922 Bond Coupons A coupon payment on a bond is a periodic interest payment that the bond holder receives during the time between when the bond is issued and when it matures. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Mecca Temple Coupons."CC BY-SAhttp://en.wikipedia.org/wiki/File:Mecca_Temple_Coupons.jpgView on Boundless.com

32. Bond Valuation Real and nominal The relationship between real and nominal interest rates is captured by the formula. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Nominal interest rate."GNU FDLhttp://en.wikipedia.org/wiki/Nominal_interest_rateView on Boundless.com

33. Bond Valuation Redeemed Bonds This Bond is one of the 400 issued to the Central Pacific Rail Road Company of California and 200 to the Western Pacific Rail Road Company in 1865 under the Act of the California Legislature passed on April 22, 1863. Coupon #1 was redeemed and cancelled on November 2, 1865, and coupon #35 on November 2, 1882, at which time the principal of $1,000.00 in gold coin was also paid from the Treasury of the City and County of San Francisco and the Bond was cancelled. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Pacific RR Bond SF 1865."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Pacific_RR_Bond_SF_1865.jpegView on Boundless.com

34. Bond Valuation Municipal bond Municipal bond issued in 1929 by city of Kraków (Poland). Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Obligacja1929Krakow10."CC BY-SAhttp://en.wikipedia.org/wiki/File:Obligacja1929Krakow10.jpgView on Boundless.com

35. Bond Valuation Eurozone Government Bonds Yield Development of yield to maturity of bonds of 2019 maturity of a number of Eurozone governments. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Eurozone government bonds yield."GNU FDLhttp://commons.wikimedia.org/wiki/File:Eurozone_government_bonds_yield.pngView on Boundless.com

36. Bond Valuation New York Stock Exchange Most bonds are not sold in centralized marketplaces, such as the New York Stock Exchange, leading to a lack of price transparency. Free to share, print, make copies and changes. Get yours at www.boundless.com Flickr."All sizes | New York Stock Exchange | Flickr - Photo Sharing!."CC BYhttp://www.flickr.com/photos/proimos/5899896730/sizes/m/in/photostream/View on Boundless.com

37. Bond Valuation Bond price and yield Several curves depicting the inverse relationship between bond price and yield (interest rates). Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia.CC BY-SAhttp://upload.wikimedia.org/wikipedia/commons/e/e5/Durvexity.GIFView on Boundless.com

38. Bond Valuation Yield Curve Example This yield curve from 2005 demonstrates the projected yield over time of USD. As you can see, this is a typical yield curve shape, as the longer the contract is held out the higher the rate of return (with diminishing returns). Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."USD_yield_curve_09_02_2005.JPG."CC BY-SA 3.0https://upload.wikimedia.org/wikipedia/commons/1/18/USD_yield_curve_09_02_2005.JPGView on Boundless.com

39. Bond Valuation Interest Rates in Turkey Overnight rates in Turkey are estimated to fall in 2013, indicating a loosened monetary policy. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Interest rates in Turkey."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Interest_rates_in_Turkey.svgView on Boundless.com

40. Bond Valuation Macaulay duration The Macaulay duration is the name given to the weighted average time until cash flows are received and is measured in years. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Duration (finance)."GNU FDLhttp://en.wikipedia.org/wiki/Duration_(finance)View on Boundless.com

41. Bond Valuation Annuity formula The formula to calculate PV of annuities. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Annuity (finance theory)."GNU FDLhttp://en.wikipedia.org/wiki/Annuity_(finance_theory)View on Boundless.com

42. Bond Valuation Government Bond The short-term bond of Kolchak government in 1919 with a face value of 500 rubles. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Russia-Kolchak-1919-Bonds-500-Obverse."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Russia-Kolchak-1919-Bonds-500-Obverse.pngView on Boundless.com

43. Bond Valuation San Francisco Pacific Railroad Bond A bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon). In addition, the issuer might have to repay the principal at a later date, which is termed the maturity. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."South Carolina consolidation bond."CC BY-SAhttp://en.wikipedia.org/wiki/File:South_Carolina_consolidation_bond.jpgView on Boundless.com

44. Bond Valuation Bond A bond is a debt owned by the enterprise to the bondholder. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."South Carolina consolidation bond."CC BY-SAhttp://en.wikipedia.org/wiki/File:South_Carolina_consolidation_bond.jpgView on Boundless.com

45. Bond Valuation Cost Of Money The cost of money is the opportunity cost of holding money in hands instead of investing it. Free to share, print, make copies and changes. Get yours at www.boundless.com Flickr."All sizes | Interest rate vs money balance | Flickr - Photo Sharing!."CC BY-SAhttp://www.flickr.com/photos/rmgimages/4882451326/sizes/m/in/photostream/View on Boundless.com

46. Bond Valuation Temporary bonds for the state of Kansas issued in 1922 Par values of these bonds were $50, $100, $10000, and $3000. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Bond (finance)."GNU FDLhttp://en.wikipedia.org/wiki/Bond_(finance)View on Boundless.com

47. Bond Valuation Yield curve for USD The US dollar yield curve as of February 9, 2005. The curve has a typical upward sloping shape. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."Term structure."CC BYhttp://en.wikipedia.org/wiki/Term_structureView on Boundless.com

48. Bond Valuation Israel Shekel yield curve This graph is an example of a yield curve on Israeli Non-Linked Fixed Rate government bonds. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Yield curve israel shekel govt March 2008."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Yield_curve_israel_shekel_govt_March_2008.gifView on Boundless.com

49. Bond Valuation San Francisco Pacific Railroad Bond $1,000 (30 year, 7%) "Pacific Railroad Bond" (#93 of 200) issued by the City and County of San Francisco under "An Act to Authorize the Board of Supervisors of the City and County of San Francisco to take and subscribe One Million Dollars to the Capital Stock of the Western Pacific Rail Road Company and the Central Pacific Rail Road Company of California and to provide for the payment of the same and other matters relating thereto" approved on April 22, 1863, as amended by section Five of the "Compromise Act" approved on April 4, 1864, to fund the construction of the Western Pacific Railroad between San Francisco Bay (at Alameda) and the CPRR of Cal. at Sacramento, dated May 1, 1865. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia."San Francisco Pacific Railroad Bond WPRR 1865."CC BY-SAhttp://en.wikipedia.org/wiki/File:San_Francisco_Pacific_Railroad_Bond_WPRR_1865.jpgView on Boundless.com

50. Bond Valuation Government Bond Bond of National Loan issued by Polish National Government in 1863. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikimedia."Bond of National Loan issued by Polish National Government 1863."CC BY-SAhttp://commons.wikimedia.org/wiki/File:Bond_of_National_Loan_issued_by_Polish_National_Government_1863.pngView on Boundless.com