Understanding Yield Curve Dynamics and Market Applications

Financial Math | Yield Curves | Bonds | Duration | Spot Rates | Forward Rates | Total Return Analysis

Created by: Starweaver Instructor Team
Learning | Doing | Connecting®

Created by: Paul Siegel
Top rated instructor and course creator

What Will I Learn?

• Understand how yield curves depict fixed income instrument pricing and risk premiums
• Explain duration as a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates
• Describe the different types of duration, and how each is used in managing and/or quantifying risk
• iscuss alternative yield curves that are used to price or assess the value of fixed income instruments
• Apply total return analysis over a variety of interest rate scenarios
• Interpret current coupon yield curves, par coupon yield curves, spot rate curves, treasury strip curves and forward rate curves
• Use TRA to assess risk and return as an alternative to simply using yield to maturity as an estimate of future returns

Requirements

• Participants are expected to have basic math knowledge coming into this course
• A financial calculator is recommended to get the most out of this course
• Knowledge of the English language

Target audience

• Analysts and associates in commercial, corporate and investment banking.