Course Introduction

This course offers a deep dive into fixed income markets, exploring the essentials of bonds, money markets, yield relationships, and pricing strategies. With practical examples and theoretical insights, students will understand the intricacies of discounted instruments, term structures, and rate-of-return calculations. Perfect for finance professionals, students, and enthusiasts looking to build expertise in the fixed income domain.

Section-Wise Curriculum Overview

Section 1: Introduction

Kickstart your journey by understanding the basics of fixed income and its market significance.

• Lecture 1: Overview of Fixed Income Course (Preview enabled)
  Introduction to the structure and goals of the course.

• Lecture 2: Introduction to Fixed Income (Preview enabled)
  Basics of fixed income securities and their role in the financial ecosystem.

• Lecture 3: What is Fixed Income Market (Preview enabled)
  Insights into the fixed income market, its participants, and its dynamics.

Section 2: Types of Bonds

Explore the diverse world of bonds and their yield calculations.

• Lecture 4: Types of Bonds
  Overview of various bond types, including government, corporate, and municipal bonds.

• Lecture 5: Types of Yield and Returns
  Different yield measures and how they reflect returns on bonds.

Section 3: Money Market and Price Relationship

Understand short-term debt instruments and the connection between yields and prices.

• Lecture 6: Money Market
  Introduction to money market instruments and their importance in liquidity management.

• Lecture 7: Certificate of Deposits
  Characteristics and applications of certificates of deposit.

• Lecture 8: Yield and Price Relationship
  How yields and bond prices are interrelated and affected by market movements.

Section 4: Formula Convexity

Learn about convexity and its role in measuring bond price sensitivity.

• Lecture 9: Formula Convexity
  Introduction to the concept and formula of convexity.

• Lecture 10: Formula Convexity Continues
  Advanced applications and calculations involving convexity.

Section 5: Cash Flow of a Bond

Examine the cash flows of bonds and understand critical measures like DVO1 and XIRR.

• Lecture 11: Convexity and DVO1 of Bond
  Relationship between convexity and duration value of a basis point.

• Lecture 12: M Duration and PVO1 of Bond
  Exploring modified duration and price value of a basis point.

• Lecture 13-15: Cash Flow of a Bond and Examples
  Calculation and analysis of bond cash flows with XIRR.

• Lecture 16-17: Day Count Convention
  How day count conventions impact bond valuation and interest calculations.

Section 6: Discounted Instrument Pricing

Master pricing techniques for discounted instruments and accrued interest.

• Lecture 18: Zero Coupon Instrument
  Understanding zero-coupon bonds and their pricing.

• Lecture 19-20: Discounted Instrument and Yield Examples
  Calculating discounted yields and returns.

• Lecture 21: Accrued Interest and Purchase Price
  Practical examples of accrued interest calculations.

• Lecture 22-24: Discounted Pricing and Trade Output Examples
  Comprehensive exercises to solidify pricing concepts.

Section 7: Rate of Returns

Learn to calculate returns, including yield-to-maturity (YTM) and IRR.

• Lecture 25-26: Accrued Interest
  Detailed methods for determining accrued interest on bonds.

• Lecture 27: Yield to Maturity
  Introduction to YTM and its importance in fixed income analysis.

• Lecture 28-30: Formula of Price, IRR, and MIRR
  Detailed calculations for price determination, internal rate of return, and modified IRR.

Section 8: Term Structure of Interest Rates

Analyze interest rate structures, spot rates, and forward rates.

• Lecture 32: Structure of Interest Rate and Spot Rate
  Understanding how interest rates evolve over time.

• Lecture 33-34: Zero Coupon Rates VS YTM
  Comparing zero-coupon rates with yield-to-maturity.

• Lecture 35-36: Forward Rates and Examples
  Calculation and application of forward rates.

• Lecture 37-38: Liquidity Preference and Market Dynamics
  Theories explaining term structures and how market dynamics influence interest rates.

Conclusion

By completing this course, you’ll have a robust understanding of fixed income instruments, pricing mechanisms, and the critical role of interest rates, enabling you to make informed decisions in the fixed income markets.