Course Outline:
Basic Financial Measures
- Objectives
- Yield Measures
- Total Return Analysis
- Net Present Value
- Duration
- Convexity
- Price Value of a Basis Point
Time Value of Money
- Objectives
- Introduction
- Future Value of Money
- Present Value of Money
- Future Value of Annuities
- Present Value of Annuities
- Present Value of Perpetuities
- Amortization
Bond Pricing
- Objectives
- Pricing of Option-free Bond
- Pricing of Floater/Inverse Floater
- Price Determination between Coupon Periods
- Yield Analysis
- Price Volatility
Yield Curve Analysis
- Objectives
- Introduction to Yield Curve Analysis
- Types of Yield Curves
- Analyzing Yield Curve
- Bond Arbitrage Strategies
- Application of Yield Curves
Probability Distributions and their Properties
- Objectives
- Introduction
- Types of Probability Distribution
Measuring Volatility
- Objectives
- Review of Concepts
- Normal Distribution
- Introduction to Volatility
- Estimating Volatility
Correlation and Regression Analysis
- Objectives
- Introduction to Correlation
- Calculating Correlation
- Regression Analysis