Description
This Fixed Income Investments course contains everything you need to know about fixed income securities.
You will cultivate an extensive understanding of bonds’ features, markets, and the most important aspects of valuation.
First, we introduce you to the basic terms you will use as a fixed income analyst or investor. We discuss the concepts of price and future value, principal and coupon payments, par value, and maturity date.
We explain the difference between fixed-rate and floating-rate bonds, the meaning of sinking fund provisions, typical bond structures, and some examples of positive and negative covenants. Then, we discuss fixed income markets, the major types of fixed income securities, and the mechanics of issuing bonds in primary and secondary markets.
In the last section of the fixed income course, you can practice what you’ve learned. We show you how to calculate a bond’s price and yield-to-maturity, yield-to-call, and other yield measures in Excel. Lastly, we teach you how to value bonds from scratch and compare and interpret various risk and return indicators.
What You’ll Learn
In this Fixed Income Investments course, we:
- Explain the basic features of fixed income securities—price, discount rate, coupon payment, time to maturity, etc.
- Illustrate what bond indenture, covenants, and contingency provisions are
- Describe how primary and secondary bond markets work
- Guide you through the various types of bonds—government corporate bonds, structured financial instruments, and others
- Calculate a bond’s price, yield-to-maturity, accrued interest, and full and flat prices in Excel
- Calculate different yield measures for fixed-rate bonds, floating-rate bonds, and money-market instruments
