Fixed Income: Analysis and Valuation

Question 1

Debt Valuation: 3-Step Bond Valuation Process

Answer 1

Question 2

Debt Valuation: Difficulties in Estimating Cash Flow Stream

Answer 2

Question 3

Debt Valuation: Valuing an Annual-Pay Bond Using a Single Discount Rate - Example

Answer 3

Question 4

Debt Valuation: Calculate a Zero-Coupon Bond Price

Answer 4

Question 5

Debt Valuation: Price Change as Maturity Approaches - Graph

Answer 5

Question 6

Debt Valuation: Value Change as Time Passes Problem

Answer 6

Question 7

Debt Valuation: Price-Yield Relationship Semiannual-Pay 8% 3-year Bond

Answer 7

Question 8

Debt Valuation: Arbitrage-Free Bond Prices

Answer 8

Question 9

Debt Valuation: Arbitrage-Free Pricing Example

Answer 9

Question 10

Debt Valuation: Arbitrage Process

Answer 10

Question 11

Yield/Spot/Forwards: Sources of Bond Return

Answer 11

Question 12

Yield/Spot/Forwards: Traditional Measures of Yield

Answer 12

Question 13

Yield/Spot/Forwards: YTM for an Annual-Pay Bond - Example

Answer 13

Question 14

Yield/Spot/Forwards: YTM for a Semiannual-Pay Bond - Formula

Answer 14

Question 15

Yield/Spot/Forwards: Semiannual-Pay YTM - Example

Answer 15

Question 16

Yield/Spot/Forwards: Equivalent - Yields - Problem

Answer 16

Question 17

Yield/Spot/Forwards: Current Yield

Answer 17

Question 18

Yield/Spot/Forwards: Yield Measures - Problem

Answer 18

Question 19

Yield/Spot/Forwards: Yield to First Call/ Refunding

Answer 19

Question 20

Yield/Spot/Forwards: Yield to Call Problem

Answer 20

Question 21

Yield/Spot/Forwards: Yield to Put/Cash Flow Yield

Answer 21

Question 22

Yield/Spot/Forwards: Assumptions/Limitations of Traditional Yield Measures

Answer 22

Question 23

Yield/Spot/Forwards: Factors affecting Reinvestment Risk

Answer 23

Question 24

Yield/Spot/Forwards: Annual-Pay YTM to Semiannual-Pay YTM - Example

Answer 24

Question 25

Yield/Spot/Forwards: Semiannual-Pay YTM to Annual-Pay YTM - Example

Answer 25

Question 26

Yield/Spot/Forwards: Theoretical Treasure Spot Rates - T-Bill

Answer 26

Question 27

Yield/Spot/Forwards: Nominal / Zero-Volatility Spreads

Answer 27

Question 28

Yield/Spot/Forwards: Option-Adjusted Spreads

Answer 28

Question 29

Yield/Spot/Forwards: Forward Rates

Answer 29

Question 30

Yield/Spot/Forwards: Spot Rate/ Forward Rates - Formulas

Answer 30

Question 31

Yield/Spot/Forwards: Forward Rates from Spot Rates - Example

Answer 31

Question 32

Yield/Spot/Forwards: Spot Rates from Forward Rates - Example

Answer 32

Question 33

Yield/Spot/Forwards: Forward Rates - Problem

Answer 33

Question 34

Interest Risk: Measuring Interest Rate Risk

Answer 34

Question 35

Interest Risk: Option-Free Bond Price-Yield Curve

Answer 35

Question 36

Interest Risk: Callable Bond Value

Answer 36

Question 37

Interest Risk: Price-Yield for Putable Bond

Answer 37

Question 38

Interest Risk: Computing Effective Duration

Answer 38

Question 39

Interest Risk: Effective Duration - Example

Answer 39

Question 40

Interest Risk: Duration Measures

Answer 40

Question 41

Interest Risk: Effective Duration

Answer 41

Question 42

Interest Risk: Duration Interpretation

Answer 42

Question 43

Interest Risk: Bond Portfolio Duration

Answer 43

Question 44

Interest Risk: The Convexity Adjustment - Graph

Answer 44

Question 45

Interest Risk: Convexity Effect

Answer 45

Question 46

Interest Risk: Duration- Convexity Estimated - Example

Answer 46

Question 47

Interest Risk: Modified and Effective Convexity

Answer 47

Question 48

Interest Risk: Price Value of a Basis Point - Example

Answer 48

Question 49

Interest Risk: Impact of Yield Volatility

Answer 49

Question 50

Interest Risk: Effective Duration - Problem

Answer 50

Question 51

Interest Risk: Duration and Convexity - Problem

Answer 51

Question 52

Credit Analysis: Credit-Related Risks

Answer 52

Question 53

Credit Analysis: Seniority Ranking

Answer 53

Question 54

Credit Analysis: Priority of Claims in Bankruptcy

Answer 54

Question 55

Credit Analysis: Credit Ratings Types

Answer 55

Question 56

Credit Analysis: Credit Ratings - Grades

Answer 56

Question 57

Credit Analysis: Credit Ratings - Problem

Answer 57

Question 58

Credit Analysis: Risks in Relying on Credit Ratings

Answer 58

Question 59

Credit Analysis: Components of Credit Analysis

Answer 59

Question 60

Credit Analysis: Capacity

Answer 60

Question 61

Credit Analysis: Collateral

Answer 61

Question 62

Credit Analysis: Covenants

Answer 62

Question 63

Credit Analysis: Character

Answer 63

Question 64

Credit Analysis: Financial Ratios

Answer 64

Question 65

Credit Analysis: Leverage Ratios

Answer 65

Question 66

Credit Analysis: Coverage Ratios

Answer 66

Question 67

Credit Analysis: Credit Quality - Example

Answer 67

Question 68

Credit Analysis: Yield Spreads | Level and Volatility

Answer 68

Question 69

Credit Analysis: Return Impact of Spread Changes

Answer 69

Question 70

Credit Analysis: Return Impact - Problem

Answer 70

Question 71

Credit Analysis: High Yield Bonds: Sources of Liquidity

Answer 71

Question 72

Credit Analysis: High Yield Bonds: Projections /. Debt Structure Analysis

Answer 72

Question 73

Credit Analysis: High Yield Bonds:Corporate Structure Analysis

Answer 73

Question 74

Credit Analysis: Covenants' Analysis

Answer 74

Question 75

Credit Analysis: Sovereign Bonds

Answer 75

Question 76

Credit Analysis: Analysis of Sovereign Bonds

Answer 76

Question 77

Credit Analysis: Municipal Bonds

Answer 77

Question 78

Credit Analysis: Analysis of Municipal Bonds

Answer 78