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Fixed I ncome Securities
Copyright \u00a9 1996 \u2013 2006
Investment Analytics
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Fixed I ncome Securities
Copyright \u00a9 1996-2006 Investment Analytics
Fixed I ncome Securities
Slide: 2
Treasury Securities
\ue000Bonds, Notes & Bills
\ue000
The Yield Curve
Future Valueof $100:
Time Value of Money
$110
$100
T = 1 year
R = 10%
\ue000
Copyright \u00a9 1996-2006 Investment Analytics
Fixed I ncome Securities
Slide: 3
\ue000$100 * (1 + 10%) = $110
\ue000
Present Valueof $110:
\ue000$110/ (1 + 10%) = $100
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