From 0 to 1: Bond Theory and Valuation

A zoom-in, zoom-out, connect-the-dots take on FCFF models, Dividend discount models, and equity valuation

4.65 (25 reviews)
Udemy
platform
English
language
Investing & Trading
category
instructor
1,534
students
4 hours
content
May 2017
last update
$49.99
regular price

What you will learn

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

Description

Course Description

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.

What's Covered:

  • 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

Content

You, This Course and Us

You, This Course and Us

Credit and Basics of Bond

What is Credit?
The Origination of Bonds
The Specific features of Bonds
The Yield Curve
Bond Yield and an example
Connection between bond Price, Par Value, interest and Yield

Risks relating to bond investment

Coupon Rates and Reinvestment Risk
Interest Rate Risk and types of bonds
A teaser into Convexity
Various options attached bonds

Series of Examples

Interest Rates, bond prices, maturity amount
Accrued interest, Clean Price, floating interest
Bond Rating, comparing two bonds
Bond Duration, Value of Call and Put Options

Up one level with the series of examples

Present Value of Bonds
Negative Relationship between Yield and Price
Modified Duration and Macauley Duration
Duration of Zero Coupon Bonds, Error Margins

Bond Convexity

Deriving Bond Convexity
Previous examples using convexity
Effective Convexity and Effective Duration

Primer on Net Present Value

Compound interest and NPV
NPV and Price
A Simple PV Example
Future Value of Present Cash Flow
Semi Annual Compounding
Continuous Compounding
NPV of Stream of Cash Flows

Screenshots

From 0 to 1: Bond Theory and Valuation - Screenshot_01From 0 to 1: Bond Theory and Valuation - Screenshot_02From 0 to 1: Bond Theory and Valuation - Screenshot_03From 0 to 1: Bond Theory and Valuation - Screenshot_04

Charts

Price

From 0 to 1: Bond Theory and Valuation - Price chart

Rating

From 0 to 1: Bond Theory and Valuation - Ratings chart

Enrollment distribution

From 0 to 1: Bond Theory and Valuation - Distribution chart

Related Topics

1196816
udemy ID
4/28/2017
course created date
8/8/2019
course indexed date
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