a. describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve;

b. describe the forward pricing and forward rate models and calculate forward and spot prices and rates using those models;

c.describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping;

d. describe the assumptions concerning the evolution of spot rates in relation to forward rates implicit in active bond portfolio management;

e. describe the strategy of riding the yield curve;

f. explain the swap rate curve and why and how market participants use it in valuation;

g. calculate and interpret the swap spread for a given maturity;

h. describe the Z-spread;

i. describe the TED and Libor-OIS spreads;

j. explain traditional theories of the term structure of interest rates and describe the implications of each theory for forward rates and the shape of the yield curve;

k. describe modern term structure models and how they are used;

l. explain how a bond's exposure to each of the factors driving the yield curve can be measured and how these exposures can be used to manage yield curve risks;

m. explain the maturity structure of yield volatilities and their effect on price volatility.