This is the second half of Chapter 5, where the authors get into the weeds of how to actually measure value in bonds. If the first half was about understanding the yield curve, this half is about the tools you use to identify which bonds are cheap and which are rich.
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 8 is where Madura gets into the math behind bond prices. If Chapter 7 was about the types of bonds, this chapter explains how to figure out what they are worth, why their prices change, and how investors manage the risk. It is the most technical chapter so far, but the concepts are fundamental to understanding how fixed-income investing works.