A zoom-in, zoom-out, connect-the-dots tour of Bond Theory and Valuation
Let's parse that
- 'connect the dots': Bonds is an relatively safe investments instrument with steady stream of income. The various attributes of bonds can make it conceptually complex - the various bond options just add on to the complexities. This course makes sure the concepts are made crystal clear.
- 'zoom in': Getting the details is very important in bond valuation - All attributes influence each other in some way or the other. This course gets the details right where they are important.
- 'zoom out': Details are important, but not always. This course knows when to switch to the big picture.
- Credits: Explained with example what credit is, why is it needed, the borrowers and the lenders.
- The issuers of Bond: Why are bonds issued, the credit ratings and their importance
- Attributes of Bond: Grilling down the Bond Certificate to get to the specifics of bonds: Coupon Rates, Principal, Maturity, Duration.
- Yield Curve: Explanation of what Yield curve represents, the factors that impact the yield, discounting and Yield computation
- Bond Risks: Interest rate risks, reinvestment risk, liquidity risk
- Bond Options: Examples relating to put and call options, interest floor options
- Duration: Modified Duration, Macauley Duration
- Convexity: Derivation of Convexity, how it eliminates error margin
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What are the requirements?
- This course assumes no prior knowledge of accounting or finance
What am I going to get from this course?
- Over 28 lectures and 4 hours of content!
- Understand the specs of bonds and the relationship between each attributes
- Learn how to compute Yield, duration, price along with fixed and floating interest rates
- Compare two bonds based on ratings and features and decide which is better
What is the target audience?
- Yep! Business majors and aspiring MBAs
- Yep! Finance professionals who are rusty on equity valuation
- Yep! CFA Candidates
- Yep! Accountants looking to strengthen their applied corporate finance skills
- Yep! Non-finance professionals, aspiring entrepreneurs looking to understand how companies are valued