 |  Investments, 4th Canadian Edition, 4/e Zvi Bodie,
Boston University School of Management
Alex Kane,
University of California, San Diego
Alan Marcus,
Boston College
Stylianos Perrakis,
Concordia University
Peter Ryan,
University of Ottawa
Bond Prices and Yields
Web LinksPrepared by William Lim, University of New Brunswick.
| | | Junk Bonds: Errold F. Moody Jr.
(http://www.efmoody.com/investments/junk.html)
Securities rated BBB and above are called/rated investment grade. Securities rated below investment grade are euphemistically called "junk bonds" yesterday and high-yield bonds today. These securities carry a high degree of risk and those at the lower end of their individual rating scale (CCC) are considered speculative investments by the major credit rating agencies. |
| | | Junk Bonds: The Financial Pipeline Inc.
(http://www.finpipe.com/bndjunk.htm)
A high yield, or "junk", bond is a bond issued by a company that is considered to be a higher credit risk. The credit rating of a high yield bond is considered "speculative" grade or below "investment grade". This means that the chance of default with high yield bonds is higher than for other bonds. Their higher credit risk means that "junk" bond yields are higher than bonds of better credit quality. This has been validated by empirical studies. |
| | | Bond Calculator: Smartmoney.com
(http://www.smartmoney.com/onebond/index.cfm?story=bondcalculator)
This bond calculator helps you calculate the bond’s yield to maturity when you are given the bond price, coupon rate and time to maturity. This calculator (and others) use an algorithm known as “interpolation”. |
| | | Junk Bonds: The Wall Street Journal
(http://interactive.wsj.com/public/current/articles/SB875832904308097000.htm)
Bond Funds With Highest Risks Finished With Highest Returns By GREGORY ZUCKERMAN, Staff Reporter of THE WALL STREET JOURNAL October 10, 1997 |
| | | Junk Bonds: Red Herring Communications
(http://herring.com/mag/issue52/junk.html)
Article: THE JUNK JOYRIDE Immature tech companies are tapping the high-yield debt market for cheap capital. By Stephanie T. Gates, The Red Herring magazine March 1998 "Junk bonds keep America fit," was the mantra of '80s junk-bond king Michael Milken. But now it's the '90s, and junk bonds are no longer. They've been given the more flattering name high-yield securities. But high-yield securities are still junk--just below investment-grade unsecured debt, which companies issue in the form of bonds with high interest rates. |
| | | Bond Pricing: Philadelphia Business Journal
(http://www.amcity.com/philadelphia/stories/101298/story4.html)
Article: Vanguard weighs in on bond pricing by Peg Brickley Philadelphia Business Journal. October 12, 1998, An article on the mysteries of bond pricing by a professional bond portfolio manager. |
| | | Government of Canada Bond Yields: Bank of Canada
(http://www.bank-banque-canada.ca/english/bonds.htm)
Government of Canada bond yields are mid-market closing rates. Also Weekly Financial Statistics (PDF format) for recent historical data or Selected historical interest rates for full historical data can be downloaded. |
|
2003 McGraw-Hill Higher Education