Abstract
Three methods for pricing bonds are presented: using a constant yield to maturity, using the yield curve with discount factors, and using implied forward rates from the yield curve with backward induction. By moving beyond the first method, more dynamic duration and convexity analyses emerge. Further, logical connections and extensions are made in regard to pricing bonds with embedded options, the calculation of a swap rate, and the “bond bootstrapping” process for building a yield curve.
Forthcoming in the Journal of Wealth Management
Document Type
Article
Publication Date
2026
Publisher Statement
Please note that this paper has been accepted for publication in the Journal of Wealth Management. Only the abstract is available here.
Recommended Citation
Alexander, Maura; Arnold, Tom; and Liu, Xiu (Summer), "[Abstract for] Bond Pricing Mechanics Beyond Yield-to-Maturity Based Calculations" (2026). Finance Faculty Publications. 85.
https://scholarship.richmond.edu/finance-faculty-publications/85
