Introduction to Fixed Income Valuation (2023 Level I CFA® Exam - Fixed Income-Module 3)

Prep Packages for the CFA® Program offered by AnalystPrep (study notes, video lessons, question bank, mock exams, and much more):
Level I: analystprep.co...
Level II: analystprep.co...
Levels I, II & III (Lifetime access): analystprep.co...
Prep Packages for the FRM® Program:
FRM Part I & Part II (Lifetime access): analystprep.co...
Topic 6 - Fixed Income Markets
Module 3 - Introduction to Fixed Income Valuation
0:00 Introduction and Learning Outcome Statements
2:39 LOS : Calculate a bond’s price given a market discount rate.
13:58 LOS : Identify the relationships among a bond’s price, coupon rate, maturity, and market discount rate (yield-to-maturity).
17:58 LOS : Define spot rates and calculate the price of a bond using spot rates.
22:45 LOS : Describe and calculate the flat price, accrued interest, and the full price of a bond.
27:36 LOS : Describe matrix pricing.
32:31 LOS : Calculate annual yield on a bond for varying compounding periods in a year.
34:40 LOS : Calculate and interpret yield measures for fixed-rate bonds and floating-rate notes.
35:34 LOS : Calculate and interpret yield measures for money market instruments.
38:01 LOS : Define and compare the spot curve, yield curve on coupon bonds, par curve, and forward curve.
40:10 LOS : Define forward rates and calculate spot rates from forward rates, forward rates from spot rates, and the price of a bond using forward rates.
44:13 LOS : Compare, calculate, and interpret yield spread measures.

[@michawisniewski827]

Mr Forjan thank you for all the videos, you made that all the material seems way easier!

[@analystprep]

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@sarasreality]

I appreciate your time and efforts professor James. I've enjoyed it. thank you

[@ahaanramchandani3108]

thank you, love the content

[@analystprep]

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@saikrishnabandi8736]

Thank you sir

[@kganyomolete8647]

Thank you for the video Prof, under matrix pricing. How did you get the YTM for Bond-L and Bond-M?

[@thuongphan3994]

great material ! I cannot find reading 42. 43 and 44 on the channel on Fixed Income :(

[@gees3156]

Where can we get your calculator .

[@ketanupasani709]

Greetings sIr,
At 29:55 I tried to calculate the YTM for both the bonds by taking PV as -100, FV as 108 and 105, n as 3 & 5 and PMT as 5.5 and 4.5 respectively. I am getting different rates after computing for I/Y. The YTM rates (I/Y) I am getting are 7.965% (3 year) and 5.3977% (5 year) respectively... Please help me where I am going wrong... (Checked for correct P/Y settings, period settings, double checked inputs and signs as well as tried other YTM sums which is giving me the right answer.) @AnalystPrep

[@CelineTran-cewhalee]

PV must be -108 and -105 since it is the "price" at the moment - meaning you (investor) have to "pay" for it at the moment in order to receive the par value (100) (recall the "pull to par" - constant-yield price trajectory) + coupon payment (5,5% & 4,5% resp)

[@MouliBeesetti]

Please use a mouse, or pointer to explain...