Valuation of Bonds

CRITERIA

NON-PERFORMANCE

BASIC

PROFICIENT

DISTINGUISHED

Explain what a call provision enables bond issuers to do. 

Does not explain what a call provision enables bond issuers to do. 

Explains what a call provision enables bond issuers to do but omits key elements.

Explains what a call provision enables bond issuers to do. 

Analyzes what a call provision enables bond issuers to do and connects the analysis to relevant real-world situations. 

Explain why bond issuers would exercise a call provision. 

Does not explain why bond issuers would exercise a call provision. 

Explains why bond issuers would exercise a call provision but omits key elements.

Explains why bond issuers would exercise a call provision. 

Analyzes why bond issuers would exercise a call provision and connects the analysis to relevant real-world situations. 

Define a discount bond and a premium bond. 

Does not define a discount bond or a premium bond. 

Defines a discount bond and a premium bond but omits key elements.

Defines a discount bond and a premium bond. 

Defines a discount bond and a premium bond and connects the definitions to relevant real-world examples. 

Describe the relationship between interest rates and bond prices.

Does not describe the relationship between interest rates and bond prices.

Describes the relationship between interest rates and bond prices but omits key elements.

Describes the relationship between interest rates and bond prices.

Analyzes the relationship between interest rates and bond prices and connects the analysis to relevant real-world situations. 

Describe the differences between a coupon bond and a zero coupon bond. 

Does not describe the differences between a coupon bond and a zero coupon bond. 

Describes the differences between a coupon bond and a zero coupon bond but omits key elements in the description. 

Describes the differences between a coupon bond and a zero coupon bond. 

Analyzes the differences between a coupon bond and a zero coupon bond and connects the analysis to relevant real-world situations. 

Calculate the price of a zero coupon bond. 

Does not calculate the price of a zero coupon bond.

Calculates the price of a zero coupon bond using inaccurate or incomplete data. 

Calculates the price of a zero coupon bond. 

Calculates the price of a zero coupon bond and explains the calculation. 

Calculate the price of a coupon bond.

Does not calculate the price of a coupon bond. 

Calculates the price of a coupon bond using inaccurate or incomplete data. 

Calculates the price of a coupon bond. 

Calculates the price of a coupon bond and explains the calculation. 

Calculate the yield to maturity on a coupon bond. 

Does not calculate the yield to maturity on a coupon bond. 

Calculates the yield to maturity on a coupon bond using inaccurate or incomplete data. 

Calculates the yield to maturity on a coupon bond. 

Calculates the yield to maturity on a coupon bond and explains the calculation.