Bond pricing

The intent is to show why a bond's price changes inversely with yield. Hopefully, this can be further developed to extend into a graphical definition of duration. Perhaps this can tie-in to reorganize the definitions of duration as shown in Duration - Definitions Refined.

Bond price, or the price of any financial instrument for that matter, is the sum of the present value of the cash flows, which is determined by:
 * 1) The present value of the (semiannual) coupon payments
 * 2) The present value of the par or maturity value

The interest rate, or discount rate, that the investor wants from investing in a bond is called the required yield.

Price/Yield Curve
Use Comparing Investments for intro to PV property of price increase / yield drop. p. 53, Exhibit 5-1 in Excel, then add graph

Yield to Maturity
p. 74 p. 94 the yield curve

Distribution Yield vs Yield to Maturity

Duration
p. 187 (graph using center of mass concept for weighted average)