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