Bond Math

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Course Features

  • Course date:TBD
  • Course Duration: 1 Day
  • Level: Advanced
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual
  • Category:
  • Certificate: Yes
  • CPE Credits: 7
  • Course Code: 801

Bond Math

Future Value of a Single Cash Flow

  • Frequency of Compounding
  • Continuous Compounding
  • Stated and Effective Rates

Future Value of a Series of Cash Flows

  • Equal Cash Flows—Ordinary Annuity
  • Unequal Cash Flows

Present Value of a Single Cash Flow

  • Finding the Present Value of a Single Cash Flow
  • Frequency of Compounding

Present Value of a Series of Cash Flows

  • The Present Value of a Series of Equal Cash Flows
  • The Present Value of an Infinite Series of Equal Cash Flows— Perpetuity
  • Present Values Indexed at Times Other than t = 0
  • The Present Value of a Series of Unequal Cash Flows

Solving for Rates, Number of Periods, or Size of Annuity Payments

  • Solving for Interest Rates and Growth Rates
  • Solving for the Number of Periods
  • Solving for the Size of Annuity Payments
  • Review of Present and Future Value Equivalence
  • The Cash Flow Additivity Principle

Overview

  • Bond features
  • Yield defined

Bonds with continency provisions

  • Callable bonds
  • Putable bonds
  • Convertible bonds

Bond prices and TVM

  • Bond pricing with the discount rate
  • Yield-to-maturity
  • Pricing bonds with spot rates

Prices and yields

  • Flat price, accrued interest and the full price
  • Yield quote conventions
  • Yield measures for fixed-rate bonds
  • Yield measures for floating-rate notes
  • Yield measures for money market instruments
  • Nominal yield
  • Current yield
  • Yield to call
  • Bond equivalent yield
  • Yield to worst
  • Yield to maturity versus rate of return

Maturity structure of interest rates

Yield spreads

  • Yield spreads over benchmark rates
  • Yield spreads over benchmark yield curve

Instructor

  • Adam Shrager is the former Coordinator of Market Operations for the American Stock Exchange, and the former Director of Corporate Training for Knight Capital Group (a.k.a. Knight Trading), where he also supervised an equity and options trading desk.   He has contributed to bestselling texts on Technical Analysis (notably Candlestick Charts) and Financial Statistics.  He …
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