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•Describe the price-yield relationship of a fixed rate bond.Illustrate your explanation using changes in yields and the effecton bond prices.•Explain the concept of duration and convexity. Discuss how bondfeatures like coupon rates, maturities, credit risks, yields,duration, convexity and prices are related.•What are the limitations of duration and convexity? Suggestways that can mitigated or overcomethe limitation(s). How do theywork?•What are the types of treasury issues, the term structure ofinterest rate, risk-free rate, spot rate, forward rate and defaultor credit risk? How do they affectbond prices
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