Description
This hands-on session will show how to price a bond using market conventions. The session begins by reviewing the concepts of time value of money. When pricing a bond, the first step is to identify the cash flows. Once they have been identified then each cash flow needs to be discounted. These concepts are examined along with accrued interest.
Course Objectives
By the end of the course, participants will be able to:
- Calculate present and future value
- Describe compounding
- Explain quoting conventions
- Differentiate between bond yields and money market yields
- Identify and discount cash flows
- Price a note/bond
- Calculate accrued interest
- Define a basis point
Prerequisites: Suggested but not required
- Introduction to Capital/Financial Markets or equivalent knowledge
- Introduction to Fixed Income
- Fixed Income Instruments
Program Level: Foundational
Target Audience: Anyone who wants to learn about pricing bonds, such as staff from operations, IT, legal, compliance, middle office, or HR, and regulators who work closely with various aspects of the fixed income markets.
Advance Preparation: None
Computers and Financial Calculators: Computers or tablets for viewing and accessing the electronic documents
Recommended CPE Credits: 2.4
Duration: 2 Hours
Time: 2:00-4:00 p.m. ET
Price: $279/learner