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ERIC Number: EJ1056166
Record Type: Journal
Publication Date: 2012
Pages: 6
Abstractor: As Provided
ISSN: ISSN-1942-2504
A Seasoned Instructor's New Look at Fixed-Income Securities: An Exercise Using Discounted Bonds
Secrest, Thomas W.
American Journal of Business Education, v5 n1 p61-66 2012
Having returned to teaching the basics of pricing fixed-income securities after several years, the author recalls the difficulty students have in understanding the total return provided by fixed-income securities that are purchased at either a discount or premium from face value. This teaching note attempts to clarify the concept by suggesting that separation of the return provided by coupon payments from the return provided by periodic changes in the fair market value may aid in student understanding. The integration of financial calculators in the classroom improves and simplifies this process for seasoned instructors
Clute Institute. 6901 South Pierce Street Suite 239, Littleton, CO 80128. Tel: 303-904-4750; Fax: 303-978-0413; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A