In this presentation, we start by looking at yield spreads and the yield curve and how the yield curve has been a very good indicator of the near-term future of the economy. We then turn our attention to the task of computing the value of a bond. The method should look very familiar since it is almost exactly the same as one of the methods we used for computing the value of stocks. The big difference is bonds are far more predictable than stocks so we can assign a much higher level of confidence to our results. But always remember, there are no guarantees when you invest in either stocks or bonds!