Reading 44. Introduction to Fixed-Income Valuation
Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Learning Outcome Statements
|Reading 44. Introduction to Fixed-Income Valuation|
|1. Bond Prices and the Time Value of Money|
a. calculate a bond's price given a market discount rate;
|2. Relationships between Bond Price and Bond Characteristics|
b. identify the relationships among a bond's price, coupon rate, maturity, and market discount rate (yield-to-maturity);
c. define spot rates and calculate the price of a bond using spot rates;
|3. Flat Price, Accrued Interest, and the Full Price|
d. describe and calculate the flat price, accrued interest, and the full price of a bond;
|4. Matrix Pricing|
e. describe matrix pricing;
|5. Yield Measures for Fixed-Rate Bonds|
f. calculate annual yield on a bond for varying compounding periods in a year;
|6. Yield Measures for Floating-Rate Notes and Money Market Instruments|
g. calculate and interpret yield measures for fixed-rate bonds and floating-rate notes;
h. calculate and interpret yield measures for money market instruments;
|7. The Maturity Structure of Interest Rates|
i. define and compare the spot curve, yield curve on coupon bonds, par curve, and forward curve;
j. define forward rates and calculate spot rates from forward rates, forward rates from spot rates, and the price of a bond using forward rates;
|8. Yield Spreads|
k. compare, calculate, and interpret yield spread measures.