12 items with this tag.
Topic 10: Interest Rate Risk and Return Learning Objectives Coverage LO1: Calculate and interpret the sources of return from investing in a fixed-rate bond Core Concept Definition: Fixed-rate bonds generate returns from three distinct sources: (1) scheduled coupon and principal payments, (2) reinves...
Topic 11: Yield-Based Bond Duration Measures and Properties Learning Objectives Coverage LO1: Define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP) Core Concept exam-focus Modified duration measures a bond’s price sensitivity to yield changes...
Topic 12: Yield-Based Bond Convexity and Portfolio Properties Learning Objectives Coverage LO1: Calculate and interpret convexity and describe the convexity adjustment Core Concept exam-focus Convexity is a complementary risk metric that measures the second-order (non-linear) effect of yield changes...
Topic 14: Credit Risk Learning Objectives Coverage LO1: Describe credit risk and its components, probability of default and loss given default Core Concept exam-focus credit-analysis Credit risk is the risk of economic loss resulting from a borrower’s failure to make full and timely payments of inte...
Topic 19: Mortgage-Backed Security (MBS) Instrument and Market Features Learning Objectives Coverage LO1: Define prepayment risk and describe time tranching structures in securitizations and their purpose Core Concept exam-focus Prepayment risk is the uncertainty about the timing and amount of princ...
Topic 6: Fixed-Income Bond Valuation: Prices and Yields Learning Objectives Coverage LO1: Calculate a bond’s price given a yield-to-maturity on or between coupon dates Core Concept Bond pricing is the application of discounted cash flow analysis — grounded in the time value of money concepts from Qu...
Topic 13: Curve-Based and Empirical Fixed-Income Risk Measures Learning Objectives Coverage LO1: Explain why effective duration and effective convexity are the most appropriate measures of interest rate risk for bonds with embedded options Core Concept exam-focus Effective duration and convexity mea...
Topic 7: Yield and Yield Spread Measures for Fixed-Rate Bonds Learning Objectives Coverage LO1: Calculate annual yield on a bond for varying compounding periods in a year Core Concept Definition: Bond yields can be expressed with different compounding frequencies (periodicity), requiring conversion ...
Topic 8: Yield and Yield Spread Measures for Floating-Rate Instruments Learning Objectives Coverage LO1: Calculate and interpret yield spread measures for floating-rate instruments Core Concept Definition: Floating-rate notes (FRNs) have coupons that reset periodically based on a reference rate plus...
Topic 9: The Term Structure of Interest Rates: Spot, Par, and Forward Curves Learning Objectives Coverage LO1: Define spot rates and the spot curve, and calculate the price of a bond using spot rates Core Concept Definition: Spot rates are the yields on zero-coupon bonds for various maturities, repr...
A DeFi map for term structure, duration, credit risk, fixed-rate markets, and predictable cash flows.
A DeFi map for term structure, duration, credit risk, fixed-rate markets, and predictable cash flows.