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Valuation, Return, and Roll-Down

Bond valuation, equilibrium, roll-down return, amortized bond, accrual bond, and yield direction terms.

Valuation, return, and roll-down terms explain how a bond’s price, accrued interest, yield path, and time-to-maturity changes contribute to fixed-income performance.

Use this branch when coupon income alone does not explain the result, especially when the bond’s value changes because of yield movements, curve shape, accrual, amortization, or pull-to-par effects.

What This Branch Covers

AreaUse it for
Bond Valuation and AccrualBond valuation, accrued interest, amortized bonds, accrual bonds, and equilibrium value.
Bond Yields and Roll-DownTreasury yields, roll-down return, positive and negative bond yields, and return from yield-curve movement.

Example

A bond can earn a positive holding-period return even when its coupon is modest if yields fall or if the bond rolls down a steep yield curve. It can also lose value when yields rise, even if every coupon payment is made on time.

Common Mistakes

  • Treating coupon income as the whole return.
  • Ignoring accrued interest and settlement timing.
  • Assuming roll-down return will repeat if the yield curve changes.
  • Using a valuation screen without checking whether prices are executable, evaluated, stale, or model-based.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Bond Yields and Roll-Down

Bond yield terms for Treasury yields, roll-down return, fixed-income return measures, and yield comparisons.

Revised on Sunday, June 21, 2026