16.1 Bond Mathematics and Valuation Models

In this section

• Pricing Formulas for Plain Vanilla Bonds
  Master the essential pricing formulas for plain vanilla bonds, understand the components, and learn how changing interest rates impact bond prices in this comprehensive guide.
• Valuation of Bonds with Embedded Options
  Explore the valuation of bonds with embedded options using advanced models like the Binomial Interest Rate Tree and Monte Carlo Simulation. Understand the role of option-adjusted spread (OAS) in pricing these complex securities.