Chapters
Chapters
Optional deep dive D1
Bonds in more detail (optional)
Which payments does a bond holding promise, and what can change before you spend them? Follow a quote through price risk, missed payments, inflation adjustment and the claim you actually own.
Next lessonWhat yield to maturity tells you
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- What yield to maturity tells youFollow a purchase through two payment dates, then see why reinvesting the first coupon changes ending wealth.Read
Those payments can stay fixed while the price changes.
- How duration changes a bond's price riskKeep the promised payments fixed and see how their price curves as the required yield changes.Read
Now change the assumption that promised payments arrive.
- What credit quality can and cannot tell youSeparate a promised coupon from cash received, and trace what a default leaves unpaid.Read
Some contracts change the payment base with a price index.
- What inflation-linked bonds protectFollow the price index into the coupon base and find the purchase premium outside the maturity floor.Read
Finally, separate the bond’s promise from the claim a fund unit gives you.
- Individual bonds and bond fundsFollow maturity money to its recipient: you, a continuing fund or a fund preparing its final payout.Read
This optional detail helps interpret a holding; it does not require adding investments. The next section follows payments across currencies and the institutions that hold your assets.
Optional deep dive: Currencies and international infrastructure (optional)