I’ve been studying the Fixed Income Valuation chapter for the past 3 days and it seems alright except for the part where you have to convert Bond Equivalent Yield, Effective Annualized Yield, Semi/Quarterly Coupon Bond Equivalent Yield, Annual Yield on Semiannual bond basis etc to each other. I just don’t understand what exactly each of these yields is and how to calculate one given the other. There are just so many different kinds of yields and I just can’t get my head around it. Can someone please clarify what each yield means and the logic behind the calculations.
We have our full Fixed Income series of Video Lessons available free (24 videos, over 4 hours worth). They cover all these topics in a visual manner. I would recommend you go through all of them to ensure you’re clear on the concepts first before launching into calculating them. All 5 playlists of videos are listed below.
One example video is this series that highlights how to do the calculations is this one, which overviews Yield Measures on Fixed Rate Bonds:
Here’s all the videos:
Fixed-Income Securities: Defining Elements:
Fixed-Income Markets: Issuance, Trading, and Funding
Introduction to Fixed-Income Valuation
Understanding Fixed-Income Risk and Return
Fundamentals of Credit Analysis
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