Bond Math

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:05/25/2020
  • Course Duration: 1 Day
  • Level: Beginner-intermediate
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: 115 Broadway, NY, NY 10006
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual
  • Category:
  • Certificate: Yes
  • CPE Credits: 7
  • Course Code: 801

Bond Math

The Bond and Financial Maths training course is designed to prepare you for a career working in the financial markets. At the end of the program, you will be completely familiar with the concepts of bond mathematics, be comfortable in applying these concepts in practice, and be able to explain the theory of pricing and valuation of fixed income securities and related products. The course is designed to provide the knowledge and skills required for newer entrants into financial markets, or experienced non-financial market professionals looking to understand fixed income.

Who should attend:

The target audience includes portfolio managers, wealth managers, and financial planners, institutional salespersons, research analysts, back-office professionals, financial analysts, cash/money managers, developers in financial firms, auditors, and compliance professionals.

Prerequisites

There are no formal pre‐requisites for the course. It will be very helpful (but not required) to have a device (laptop, iPad, etc.) which can be used with Microsoft Excel or Google Sheets.

Agenda

  • Defining returns
    • Simple return
    • Annualized return
    • Compounding
  • 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
    • The Present Value of a Series of Unequal Cash Flows
    • Present Values Indexed at Times Other than t = 0
  • 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 of Bonds
    • Bond features and price quote conventions
    • Yield defined
  • Bonds with contingency 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
    • Bond equivalent yield
    • Yield to call
    • Yield to worst
  • The term structure of interest rates: Yield Curve
    • Positive, inverted, and flat curves
    • Building a yield curve
    • Interpolation
  • Yield spreads
    • Yield spreads over benchmark rates
    • Yield spreads over the benchmark yield curve
    • Interpolation of yield curves for yield spreads

Instructor

  • John Donato has a broad range of experience in the financial industry, including trading, brokering, and designing many aspects of real-time fixed income and foreign exchange trading systems for interdealer markets. John began his career with trading and risk management roles in fixed income and foreign exchange markets with commercial banks in New York. Among …
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