Value A Bond And Calculate Yield To Maturity (YTM)

This lesson focuses on valuing bonds and yield maturity. There are four objectives: understanding simple interest, understanding compound interest on bonds, understanding current yield, and understanding yield to maturity. The lesson uses the example of Jesse, a bond investor, and discusses how to calculate the coupon yield and current yield under simple interest, and the yield to maturity under compound interest. The lesson highlights the difference between the simple interest and compound interest calculations, and the importance of the yield to maturity in accounting for the difference between the price paid for a bond and its face value at maturity. The lesson includes practical exercises and a bond calculator to aid understanding.