MGFB10H3 Chapter 6: Chapter 6 Notes
Document Summary
Chapter 6 bond valuation and interest rates notes bills or paper short-term bonds with a maturity of less than one year notes bonds with maturities between one and seven years. P = f / (1 + kbey n/365) zero coupon bond (or zero) a bond that is issue at a discount, pays no coupons, and repays the par value at the maturity date. B = f / (1 + kb)n floating rate bonds (floaters) bonds that have adjustable coupons that are usually tied to some variable short-term rate. Real return bonds bonds issued by the government of canada that provide investors with protection against inflation. Canada savings bonds (csbs) bonds issued by the government of canada that have no secondary market and cannot be traded, so their prices do not change over time. Summary of learning objectives www. notesolution. com: describe the basic and the various features of different types of bonds.
