Bonds Crash Course

Bonds Crash Course: Mastering Bond Fundamentals, Pull to Par, Convexity, and Maturity Effects

What you'll learn

Gain a solid grasp of how bonds work, including their pricing, trading, and key characteristics such as maturity and coupon rates.

Learn how bond prices move toward their face value as they approach maturity and understand the impact this has on bond investment strategies.

Discover how bond prices react to changes in interest rates, with a focus on the non-linear price-yield relationship, particularly for longer-term bonds.

Understand how a bond’s maturity and coupon rate influence price sensitivity to interest rate fluctuations, helping you make informed investment decisions.

Through examples, develop a practical understanding of how different bond-related concepts work in actual market conditions.

Requirements

A secure internet connection

A laptop, desktop, or any device that allows you to access the course videos

MS Excel

Description

Bonds Crash Course is a practical and engaging guide designed to help learners develop a solid understanding of bond fundamentals and their behavior in the financial market. The course covers essential bond concepts, including bond basics, the pull to par effect, the convexity effect, and the maturity and coupon effect.The course explains bond fundamentals, focusing on the different elements related to these debt securities, for example, maturity date and par value. It then moves on to explore the pull to par effect, illustrating how bond prices tend to move toward their face value as they near maturity. The convexity effect is also covered, highlighting how the price of a bond reacts to changes in interest rates, especially for longer-term bonds. Lastly, the course delves into the maturity and coupon effect, demonstrating how a bond’s maturity and coupon rate impact its sensitivity to interest rate fluctuations.To ensure a practical understanding, each concept is supported with clear examples to help build practical understanding. These examples allow learners to apply the theories in a real-world context. Thus, this course is informative and helps explain concepts that are applicable to everyday investment decisions. By the end of the course, learners will be equipped with the knowledge to confidently analyze bonds and their market behavior.

Overview

Section 1: Introduction

Lecture 1 What Are Bonds?

Lecture 2 Types of Bonds

Lecture 3 Pull to Par Effect

Lecture 4 Convexity Effect

Lecture 5 Maturity & Coupon Effect

Lecture 6 Conclusion

Finance professionals,Aspiring investors,Individuals looking to enhance their personal finance knowledge,Finance students,Beginners in the bond market,Individuals keep on investing in the bond market