Financial Management
Debt Securities - Drivers of Bond Valuations
Bond Pricing, Liquidity Risk, Duration, Convexity, and Interest Rate Swaps
3 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning
About This Course
Course Information
This CPD course is designed to develop your understanding of the drivers of bond valuations. We will also inspect how the risk of changes in bond value may be eliminated partially, or in full, with the use of interest rate and credit default swaps.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Driver of bond valuations – part 1 (video)
- Driver of bond valuations – part 1 (quiz)
- Driver of bond valuations – part 2 (video)
- Driver of bond valuations – part 2 (quiz)
What You Will Learn
- Explain how interest rates, credit ratings, and market liquidity drive bond price movements
- Distinguish between clean price and dirty price, and calculate accrued interest near coupon dates
- Describe the three dimensions of bond market liquidity: market liquidity, funding liquidity, and instrument liquidity
- Calculate Macaulay duration and modified duration, and explain how coupon rate, maturity, and yield to maturity affect a bond's duration
- Apply convexity to refine duration-based price change estimates for large interest rate movements
- Explain how interest rate swaps and credit default swaps can be used to partially or fully hedge bond portfolio risk
Who This Course Is For
- Finance professionals working with fixed income securities or bond portfolio management
- Accountants and analysts who need to understand bond valuation for reporting or advisory work
- Risk management professionals assessing interest rate exposure in debt portfolios
Prerequisites
- Basic understanding of how bonds work (coupon payments, maturity, face value)
- Familiarity with the concept of present value and discounting
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Course Details
CPD Credits3
CertificateYes
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Everything included in your subscription:
CPD certificate on completion
Downloadable resources
Self-paced learning
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