Abstract
A traditional bond pricing scheme used in introductory finance texts is simple enough but not necessarily intuitive. The differential approach suggested here presents premiums (discounts) as coupon interest over- (under-) payments to make bond pricing dynamics more intuitive. The primary pedagogic benefit is the differential approach demonstrates the more sophisticated bond valuation concepts of duration and convexity.
Recommended Citation
(2026)
"Teaching Bond Valuation: A Differential Approach Demonstrating Duration and Convexity,"
Journal of Economics and Finance Education: Vol. 7:
Iss.
2, Article 5.
Available at:
https://scholarship.rollins.edu/jefe/vol7/iss2/5
