Valuing government bonds helps us find the risk-free rate for financial calculations. The article discusses how to value different types of government bonds, like zero-coupon and coupon bonds. It explains concepts like spot and forward interest rates, discount factors, and yield conventions. The article also covers methods like bootstrapping and the Svensson model to estimate bond prices. Lattice models like Black-Derman-Toy and Ho-Lee are used to value interest-rate derivatives. Lastly, the article talks about using estimated risk-free rates to predict future exchange rates between currencies.