What’s on the Bond Pricing poster
The rule, 3 worked examples, and the mistake everyone makes.
- A bond's price is the present value of its coupons and principal at the market yield.
- Price = Σ C/(1+y)ᵗ + F/(1+y)ⁿ
- Yield rises = Price falls
- Yield equals coupon = Price equals par
- Longer maturity = More price sensitivity
- Common mistake: Assuming bonds are safe from loss → Rate rises cause real capital losses
Duration measures that sensitivity: roughly, price falls by the duration times the change in yield.
Questions about the Bond Pricing poster
- What’s on the Bond Pricing poster?
- The rule, 3 worked examples, and the mistake everyone makes. A bond's price is the present value of its coupons and principal at the market yield.; Price = Σ C/(1+y)ᵗ + F/(1+y)ⁿ; Yield rises = Price falls; Yield equals coupon = Price equals par; Longer maturity = More price sensitivity; Common mistake: Assuming bonds are safe from loss → Rate rises cause real capital losses. Duration measures that sensitivity: roughly, price falls by the duration times the change in yield.
- Who is the Bond Pricing poster for?
- Bond Pricing belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning markets & instruments can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the Bond Pricing poster?
- The coupon is fixed. When rates rise, the only way to compete is a lower price. A wall chart earns its place by being glanceable from where the work is happening, so Bond Pricing belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with Bond Pricing?
- Asset Classes & Claims, Currency Markets and Derivatives sit alongside Bond Pricing in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Asset Classes & ClaimsCurrency MarketsDerivatives
- Is the Bond Pricing poster free to download and print?
- Yes. Bond Pricing downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the Bond Pricing poster print at?
- Bond Pricing is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Bond Pricing loses nothing.Printing guide
Related posters
Charts that sit alongside Bond Pricing on the same wall.
Browse every Accounting & Finance poster, or start from the full catalogue.