This is “Interest Rates and Bond Valuation”, chapter 9 from the book Finance for Managers (v. 0.1). For details on it (including licensing), click here.

For more information on the source of this book, or why it is available for free, please see the project's home page. You can browse or download additional books there. You may also download a PDF copy of this book (2 MB) or just this chapter (102 KB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline).

Has this book helped you? Consider passing it on:
Creative Commons supports free culture from music to education. Their licenses helped make this book available to you.
DonorsChoose.org helps people like you help teachers fund their classroom projects, from art supplies to books to calculators.

Chapter 9 Interest Rates and Bond Valuation

My Word is My Bond…

PLEASE NOTE: This book is currently in draft form; material is not final.

Loaning small amounts of money to your friends might take no more than a word or a handshake, but when dealing with large amounts of money with complete strangers, we tend to require a bit more formality. Banks are the first place we tend to consider when we think about these more formal loans, but there are other avenues for governments, municipalities, corporations, and other borrowers to raise funds, as we disucssed in Chapter 8 "Securities Markets".