Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on May 14, 2019 for discussion and last date for posting your discussion will be May 20, 2019This Graded Discussion Board will be on the topic of Bonds Valuation.


For acquiring the relevant knowledge, do not rely only on handouts but also watch the course video lectures and read additional material available online or in any other mode.

Important Instructions:

  • ·        Your discussion must be based on logical facts.
  • ·        The GDB will open and close on above specified dates. Please note that no grace day or extra time will be given for posting comments on GDB.
  • ·        Use the font style “Times New Roman” and font size “12”.
  • ·      Your answer should be relevant to the topic i.e. clear and concise. Irrelevant discussion and unnecessary information should be avoided.
  • ·        Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
  • ·        Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.
  • ·        You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.
  • ·        Obnoxious or ignoble answer should be strictly avoided.
  • ·        You cannot participate in the discussion after the due date via email.
  • ·        Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
  • ·        For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments and GDBs in the overview tab of the course website on VU-LMS.

Views: 242

Replies to This Discussion

Graded Discussion Board:

The below chart shows the Price-Yield relationship for two Rs.500-par-value bonds i.e. Bond 1 and Bond 2  having equal coupon rate of 10% with maturity of 4 and 8 years respectively. Each price-yield curve represents a set of prices for that bond plotted against different assumed market required rates of return (market yields).


  1. Why the price-yield curve of Bond 2 is steeper than Bond 1 in given line graph? How does it affect the investor holding Bond 2?
  2. Why the bond prices vary from their par value when coupon rate is different from market required rate of return?


Special Note:

  • Your answer should be to the point and must satisfy the question requirement.
  • Copied answer or same content with only synonyms changed from any source of internet will straight away be marked zero.


For acquiring the relevant knowledge watch the course video lectures, consult recommended books, and study additional material available online or in any other mode.




© 2020   Created by Irfan Khan MSCS.   Powered by

Badges  |  Report an Issue  |  Terms of Service