Description
The Fixed Income Mathematics course is designed to provide a comprehensive understanding of the mathematical principles and techniques essential for analyzing fixed income securities. Beginning with an introduction to foundational concepts, learners progress through advanced topics such as geometric and Taylor series, derivatives, and mathematical functions. The course covers various types of fixed income instruments, including zero coupon bonds, annuities, and amortized bonds, and explores their valuation methods and practical applications. Participants also gain insights into interest rate dynamics, yield measures, and the relationship between interest rates and bond prices, equipping them with the knowledge and skills needed to make informed investment decisions in the fixed income market. Through a structured curriculum and hands-on exercises, learners develop proficiency in fixed income mathematics, enabling them to excel in this specialized field of finance.
This course includes:
- 3 hours of on-demand video
- Unlimited Access, Anytime, on mobile and TV
- Certificate of completion
Core Coverage: Fixed Income Mathematics Essentials which includes bond pricing techniques, bond mathematics, a measure of yield and return, curve trading & other essentials.
Pre-Requisites: Basic knowledge about Fixed Income would be preferable
Requirements
- Mathematics Foundation: A solid understanding of basic mathematical concepts is essential for comprehending fixed income mathematics. This includes algebra, calculus, and basic arithmetic operations.
- Financial Literacy: Familiarity with fundamental financial concepts such as interest rates, present value, and bond valuation is crucial. This ensures participants can grasp advanced topics more effectively.
- Excel Proficiency: Basic proficiency in spreadsheet software like Microsoft Excel is recommended. Many calculations and analyses in fixed income mathematics may involve Excel, so familiarity with its functions and formulas is advantageous.
- Interest in Finance: A genuine interest in financial markets, particularly in fixed income instruments, can enhance motivation and engagement with the course material. This curiosity fosters a deeper understanding and appreciation of the subject matter.
- Analytical Skills: Strong analytical skills are beneficial for interpreting data, solving problems, and understanding complex financial models. Participants with a knack for critical thinking and problem-solving may find the course more accessible.
Target Audience
- Finance Professionals: Individuals working in finance-related roles such as investment banking, asset management, or financial analysis can benefit from this course to deepen their understanding of fixed income mathematics and enhance their analytical skills.
- Students Pursuing Finance Degrees: Undergraduate or graduate students studying finance, economics, or related fields can use this course to supplement their academic curriculum and gain practical knowledge in fixed income mathematics.
- Investors and Traders: Investors and traders involved in fixed income securities can leverage this course to improve their investment decision-making process, develop better trading strategies, and navigate the complexities of the fixed income market more effectively.
- Financial Analysts: Professionals aspiring to become financial analysts or those already working in this capacity can enhance their expertise in fixed income analysis and valuation through this course, enabling them to provide more accurate financial insights and recommendations.
Example Curriculum
- Introduction to Fixed Income (1:13)
- What is Fixed Income Market (1:28)
- Type of Bonds (2:52)
- Types of Yield and Returns (6:14)
- Money Market (8:09)
- Certificate of Deposits (6:04)
- Yield and Price Relationship (8:53)
- Formula Convexity (11:20)
- Formula Convexity Continues (8:37)
- Convexity and DVO I of Bond (7:20)
- M Duration and PVO 1 of Bond (8:23)
- Cash Flow of a Bond (9:47)
- XIRR Input Value (7:23)
- Example of Cash Flow of Bond Continues (11:33)
- Day Count Convention (7:46)
- Day Count Convention Continues (7:10)
- Zero Coupon Instrument (7:54)
- Discounted Instrument (5:33)
- Discounted Yield and Yield Return Example (7:58)
- Accrued Interest and Purchase Price (5:26)
- Example of Discounted Pricing (8:53)
- Example of Discounted Pricing Continues (7:00)
- Trade Output Space Example (11:01)
- Accured Interest (9:45)
- Accured Interest Continues (3:58)
- Yield to Maturity (8:08)
- Formula Of Price (5:15)
- Discounted Instruments (11:31)
- Internal Rate Of Returns (IRR) (10:54)
- Modified Internal Rate Of Returns (MIRR) (6:09)
- Structure of Interest Rate and Spot Rate (11:03)
- Zero Coupon Rates VS YTM (7:55)
- Zero Coupon Rates VS YTM Continues (8:34)
- Forward Rates (6:58)
- Example of Forward Rates (8:03)
- Liquidity Preference (12:19)
- Market Dynamics (6:43)
- Introduction to Fixed Income Mathematics (8:27)
- Geometric Series in Fixed Income Mathematics (9:59)
- Taylor Series in Fixed Income Mathematics (7:44)
- Taylor Series in Fixed Income Mathematics Continues (8:00)
- Derivatives Fixed Income Mathematics (9:43)
- Integration Fixed Income Mathematics (6:31)
- Exponential Funtion in Essental Mathematics (9:32)
- Logrithmic Funtion in Essental Mathematics (9:24)
- Types and Characteritics of Bond (11:02)
- Formula of Zero Coupon Bond (5:29)
- Formula of Zero Coupon Bond Continues (8:25)
- Annuities and Perpetuities (10:08)
- Example of Annuities (11:01)
- Example of Annuities Continues (8:33)
- Perpetuities Bonds (9:36)
- Bullet and Amortized Bond (10:03)
- Bullet and Amortized Bond Continues (11:13)
- Par Coupon Rates in Fixed Income Mathematics (9:31)
- Par Coupon Rates in Fixed Income Mathematics Continues (11:32)
- Floatng Rate Bond (11:08)
- Interest Rate in Fixed Income Mathematics (8:10)
- Discount Rate in Fixed Income Mathematics (10:00)
- Yields and Its Works (8:32)
- Methods of Yields (8:18)
- Methods of Yields Continues (10:41)
- Rate of Return (11:50)