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

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

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

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