Bond Trader

Finance Simulation



$150 / seat

Simulation Overview

Bond Trader provides a powerful context for teaching such foundational themes as time value of money, equilibrium-required return, the yield curve, market efficiency and the pricing of information, financial substitutes and arbitrage-based security pricing, bond math, and financial market mechanics.

The Story

In the simulation, learners compete in teams or individually to maximize the value of a trading portfolio by choosing when to take positions in bond securities and when to hold cash. To increase engagement, the participants performance is ranked against their peers. Learners make buy-and-sell decisions for each weekly trading periods of 10-15 seconds.

The simulation lets participants experience the impact of the collective market decisions as bond prices dynamically evolve based on the aggregate buy-and-sell order flow from learner and computer traders in the market, using an internet-based interface.

Learning Focus

  • Motivate fundamental themes of finance, including time value of money, equilibrium-required return, the yield curve, market efficiency and the pricing of information, and financial substitutes and arbitrage-based security pricing.
  • Introduce and reinforce simple bond market concepts such as bond math mechanics, interest rate risk, reinvestment risk, and the expectations theory of the yield curve.
  • Illustrate and emphasize the competitive incentives in markets that move security prices toward fair pricing.
  • Build appreciation for market efficiency and how markets incorporate news into prices.

Topics Covered

  • Finance
  • Marketing Efficinecy
  • Bond Market Concepts

Each simulation comes with a Teaching Guidebook for the facilitator along with 1:1 facilitator training and free trials.


This simulation is by Darden Business Publishing and Forio

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