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

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