Fixed Income Securities

  1. Bond Valuation Principles
    1. Time Value of Money Foundations
      1. Present Value Concepts
        1. Discounting Future Cash Flows
          1. Discount Rate Selection
          2. Future Value Applications
            1. Compounding Mechanics
              1. Effective vs. Nominal Rates
              2. Annuity Calculations
                1. Ordinary Annuities
                  1. Annuities Due
                    1. Perpetuities
                  2. Basic Bond Pricing
                    1. Bond Pricing Formula
                      1. Present Value of Coupon Payments
                        1. Present Value of Principal Repayment
                          1. Required Rate of Return
                          2. Price-Yield Relationship
                            1. Inverse Relationship Mechanics
                              1. Price Volatility Factors
                              2. Premium and Discount Bonds
                                1. Coupon Rate vs. Required Yield
                                  1. Price Convergence to Par
                                    1. Yield Advantage Analysis
                                  2. Accrued Interest Calculations
                                    1. Day Count Conventions
                                      1. Actual/Actual
                                        1. 30/360
                                          1. Actual/360
                                            1. Actual/365
                                            2. Accrued Interest Formula
                                              1. Settlement Date Impact
                                                1. Ex-Dividend Considerations
                                                2. Clean vs. Dirty Pricing
                                                  1. Quoted Price (Clean)
                                                    1. Full Price (Dirty)
                                                      1. Market Convention Applications
                                                    2. Yield Calculations
                                                      1. Current Yield
                                                        1. Annual Coupon Income
                                                          1. Market Price Relationship
                                                            1. Limitations and Uses
                                                            2. Yield to Maturity
                                                              1. Internal Rate of Return Concept
                                                                1. Iterative Calculation Methods
                                                                  1. Reinvestment Assumptions
                                                                    1. Limitations and Criticisms
                                                                    2. Yield to Call
                                                                      1. Call Date and Price Assumptions
                                                                        1. Multiple Call Scenarios
                                                                        2. Yield to Put
                                                                          1. Put Option Valuation
                                                                            1. Optimal Exercise Decisions
                                                                            2. Yield to Worst
                                                                              1. Conservative Yield Measure
                                                                                1. Scenario Analysis
                                                                                2. Realized Compound Yield
                                                                                  1. Reinvestment Rate Assumptions
                                                                                    1. Holding Period Returns
                                                                                  2. Yield Spread Analysis
                                                                                    1. Absolute Yield Spreads
                                                                                      1. Basis Point Measurements
                                                                                        1. Credit Spread Components
                                                                                        2. Relative Yield Spreads
                                                                                          1. Yield Ratios
                                                                                            1. Percentage Spreads
                                                                                            2. Benchmark Comparisons
                                                                                              1. Treasury Benchmarks
                                                                                                1. Swap Rate Benchmarks
                                                                                                  1. Corporate Bond Indices

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                                                                                              2. Classification of Fixed Income Securities

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                                                                                              4. Risk Analysis in Fixed Income