LEARNING OBJECTIVES
After studying this chapter you will be able to get a grasp of the following:
- Fixed income securities in general
- Basics of the bond market
- Types of issues and special characteristics
- Bond coupons
- Bond maturity
- Bond pricing
- Yield measures—current yield, yield to maturity, and yield to call
- Duration
- Corporate bonds
- Municipal bonds
- Risks of investment in bonds
- Definition of financial instruments
- An overview of the categories of financial instruments
- Recent amendments to accounting standards relating to financial instruments