Watch executives of the CUSIP service discuss their history, their product and how it has been applied to thousands of securitiy types to create standardization within securities.
The cubic polynomial is the simplest function that can be used to fit the yield curve data. The speaker reviews how one would construct the yield curve using cubic polynomial; however, he also discusses why this method falls short.
The speaker uses the "solver" function in microsoft excel to more accurately peform nonlinear interpolation to build the US treasury bond yield curve. The treasury does not publish yields for every term to maturity and for this reason, interpolation must be used to
The yield curve is a plot of treasury yields accross the maturity spectrum. T-Bills have maturities of less than 1 year, t-notes have maturities between&n
The speaker provides an introduction to the yield curve, or the relationship between term to maturity and interest rates. He walks through the defintion of the T-bills, T-notes, and
Steve Walsh from Western Asset Management discusses his approach to investing; he looks for value investments and believes it is essential to diversify your portfolio. He sees alot of volatility in interest rates and spreads. He like plain vanilla mortgages and mentions that he uses bond price volatility to p
The video discusses the reason why bond prices change. Upon issuance, bonds sells at face value, or par.
The speaker discusses how term to maturity affects the price of a bond. Bond price increases with maturity whenever the coupon rate exceeds the forward rate over the period of maturity extension.
This tutorial will show you how to calculate bond pricing and valuation in excel. This teaches you how to do so through using the NPER() PMT() FV() RATE() and PV() functions and formulas in excel.
This video discusses some of the many benefits of compounding interest and shows how a balance can grow exponentially over time as the interest compounds.
This video covers the basics of compound interest and allows the viewer to understand how to calculate the present value of a cash flow with the knowledge of future value and interest rates.
This video discusses the basics of bond terminology; such as, Coupon Yield, Discount Yield, Current Yield, and Yield to Maturity (YTM).
The speaker discusses the concept of key rate duration. The key rate duration is the approximate percentage change in bond price given a 1% change in the key rate.
The bond duration calculation is illustrated using a zero coupon bond as an example. The video mentions two different ways to measure duration; Macaulay duration and modified duration. Macaulay duration is a weighted average time t