Key takeaways
- Recognise the different forms of the yield curve
- Understand the implications of the different yield curves
- Calculate the spread between a government and corporate bond
- Understand the basic principles of bond yields
- Recognise the different methodologies to calculate bond yields
- Calculate the yield to maturity of a bond
- Understand the basic principles of bond duration
- Recognise the different methodologies to calculate duration
- Measure the impact on the bond price given a 1% change in interest rates
- Understand the function and purpose of fixed income securities
- Distinguish between different types of bond
- Recognise the benefits and risks associated with fixed income
