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elearning > Fixed rate bonds

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Learn about the following:

What fixed rate bonds are and how they work. Some of the key terms used in the market. Why issuers and investors use fixed rate bonds. How fixed rate bonds can be evaluated. The risks fixed income bonds have.

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Course Summary

Fixed rate bonds menuFixed rate bonds how they workFixed rate bonds cash flows

Fixed rate bonds spreadsFixed rate bonds tradingFixed rate bonds risks

  • 60 minutes
  • 14 question multiple choice
  • What fixed rate bonds are and how they work
  • Some of the key terms used in the market
  • Why issuers and investors use fixed rate bonds
  • How fixed rate bonds can be evaluated
  • The risks fixed income bonds have

Fixed Rate Bonds - the details

1. How fixed rate bonds work

  • Principal and coupon payments
  • Maturity, currency, credit, price
  • Price quotes
  • International Securities Identification Number
  • Accrued interest, clean and dirty prices
  • Settlement and transfer
  • Static data

2. Issuers and investors

  • Issuers preferences
  • Investors preferences

3. Evaluation of fixed rate bonds

  • Cashflows, net present value
  • Yield to maturity
  • Price and yield
  • Spread to treasuries
  • Spread to swaps
  • Affect of credit and liquidity on spread
  • How traders use spreads, pricing and relative value

4. Bonds and risk

  • Credit risk, credit losses
  • Market risk, measurement, example
  • Liquidity risk
  • Foreign exchange risk

5. Summary

6. Test

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