A completely updated edition of theguide to modern bond analysisFirst published in 1972, Inside the Yield Bookrevolutionized the fixed-income industry and forever altered the way investors looked at bonds. Over forty years later, it remains a standard primer and reference among market...

In this paper, time paths of P/Es are projected, by applying a theoretical model in which the totality of “fully anticipated” future “franchise” investments serve as the source of higher P/Es. At the outset, the P/E path slowly ascends until the first franchise opportunity is reached and...