Fixed Income Securities - Bond Valuation Basics
- 4.1
Brief Introduction
Learn the Term Structure concepts and understand the calculation of present and future value in bond valuationDescription
Fixed Income (Bond) valuation and analysis is a strategy or process which is often used by the government or companies to determine the correct market value of the instrument. Through these tutorials we are understanding the calculation of present and future value in bond valuation and Term Structure concepts. The training will include the following;
1. Basics: The fundamentals
(a) FV of an investment and compounding, single-period, multiple-period, FV equation, compounding more than once a year.
(b) PV and discounting, single-period, multiple-period, PV equation
(c) Excel formulae for FV, PV
2. Introduction to Term Structure concepts:
(a) Yield, Time to Maturity, Yield to Maturity or promised yield
(b) Term Structure of Interest Rates when the interest rate is constant over all future periods
(c) Term Structure of Interest Rates when the interest rates vary through time
(d) Graphing the Term Structure, Yield curve
Requirements
- Requirements
- Basic Knowledge of Foreign Exchange Market
- Passion to Learn and apply fixed income trading concepts
- Passion to learn about Insurance concepts