Fixed-Income: The Law of One Price

Exploration of bond valuation, interest rate dynamics, and the term structure of interest rates. Fixed-Income: The Law of One Price turns that idea into something you can manipulate directly and watch respond.

Exploration of bond valuation, interest rate dynamics, and the term structure of interest rates. It focuses on Coupon Bonds, Yield Curves, Spot and Forward Rates, Modified Duration, Law of One Price from the “Fixed-Income Securities” section.

The sliders change the key inputs. Every change updates the visualization in real time, so you can see exactly how each variable affects the outcome.

Finance Theory I provides a rigorous introduction to the fundamental principles of modern financial economics and investment management. The course focuses on the valuation of financial assets, the relationship between… This demo is the interactive piece for the “Fixed-Income Securities” section. Open the full Finance Theory I course wiki at https://www.getlykke.com/explore/public/finance-theory-i-5c23d6da-c239-4628-9b1d-fb3539a0c893 for notes, flashcards, quizzes and the other demos.

You'll build intuition for Coupon Bonds, Yield Curves, Spot and Forward Rates, Modified Duration, Law of One Price — and, crucially, see how they behave when you change the inputs, which is hard to get from a textbook or lecture on Finance Theory I alone.