Here we look at Bond Pricing Formula, its calculations in excel, the link between bond pricing and yield, bootstrapping and different types of spreads.
Yield curves are one of the most fundamental measures of the effect on the economy due to various factors and are also an important driver of an economy.
An investor needs to know the bond equivalent yield formula. It allows the investor to calculate the annual yield of a bond, sold at a discount.
Convexity in Bonds measures the degree of the non-linear relationship between the price and yield of the bond.