This case is all about government bonds, using special bonds issued by the UK Authorities. It could be utilized to educate the principles of time value of money and discounting cash flows. But it may also be utilized to delve into exploring more general topics inculcating corporate financing, too as indispensable dilemmas encompassing bond pricing methodologies and bond valuation.
Eventually, the case serves as an prologue to the yield curve, its function and interpretation, an awareness of the risk of investing in bonds, along with a dialogue on risk-free rates and sovereign risk. This case was used effectively with executives and MBAs alike, in sessions running from 90 minutes to three hours, and with audiences from around the world.
The case is also suited to distance learning programs, including on-line degree and post-graduate classes in basic finance.
UK GILTS ANALYSIS OF BOND INVESTMENTS Case Study Solution
PUBLICATION DATE: January 01, 2014 PRODUCT #: IMD663-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING