AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO: - Compute a bond's price given its yield to maturity, and compute its yield to maturity given its price.
- Calculate how bond prices will change over time for a given interest rate projection.
- Identify the determinants of bond safety and rating.
- Analyze how call, convertibility, and sinking fund provisions will affect a bond's equilibrium yield to maturity.
- Analyze the factors likely to affect the shape of the yield curve at any time.
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