January 21, 2003
Coupon Bonds
We spent the hour talking about the nuts and bolts of valuing coupon bonds, including an exciting discussion of Tables A and C.
Handouts: Tables A,B,C,D. The 90-day T-bill graph from Mishkin and an excerpt from "Efficient Markets" in Chapter 27.
Point: Long-term government bonds are a risky investment.
Question for the Day: Can you identify time periods when bondholders might have been unhappy? When might they have been happy?
