Borja Larrain's "Time-Varying Rates of Return and the Yield Curve"

Please read this section that discusses the time-varying rates of return and the yield curve, and bonds and the yield curve. In addition, sensitivity to changes in interest rates are also discussed.  Application of these concepts is also presented so that the manager or executive will know how to use them. Note: There is some class specific information from the professor who created this document. Please ignore it.