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Introduction
In his seminal paper Malkiel (1962) rigorously examined the relationship between the yield to maturity of bonds and their market prices. He developed and proved five theorems and showed how the relationship between the changes in yield to maturity and bond price movements depend on the coupon, the time to maturity, and the existing yield to maturity. Malkiel's (1962) five bond theorems have become the cornerstone in understanding the relationship between bond prices and their various determinants. There is no book that we are aware of dealing with bond prices and related topics that does not refer to these five theorems.
The original ...