Inside the Yield Book: The Classic That Created the Science of Bond Analysis, 3rd Edition
by Martin L. Leibowitz, Anthony Bova, Stanley Kogelman, Sidney Homer
Preface to the 1972 Edition
The Yield Book can appropriately be called the playing field of the game of bond investment. Its structure and dimensions and the basics of price-yield relationships deserve the closest study. Too often the dollars and cents significance of bond yields is taken for granted and sometimes even is misunderstood. Our book will attempt to explore some of the basic but less obvious relationships between coupon, maturity, price and yield with the aim of aiding the investor in judging and comparing bond values.
In Part I, which is based on a series of our memoranda previously published by Salomon Brothers, we will first describe the great importance of “interest-on-interest,” that is to say, the income derived by the fully ...
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