CFA Level 1 | Fixed Income: Full Price, Flat Price, Accrued Interest
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- Опубликовано: 10 июл 2024
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CFA Level 1
Topic: Fixed Income
Reading: Introduction to Fixed-Income Valuation
To calculate the full price of a bond:
1) Compute the present value of the bond up to the previous coupon period (before the settlement date)
2) Calculate the number of days between last coupon period to settlement date (t) and the number of days between coupon periods (T).
3) Calculate the future value of the bond value in Step 1 up to the settlement date using the YTM per period and the fraction t/T
To get the flat price, subtract the accrued interest from the full price.
#NoesisExed #CFA #CFALevel1 #FixedIncome #FullPrice #FlatPrice #AccruedInterest
this saves me so much time for the upcoming exam....thank you so much
Insightful..and timely.
Your videos help me out. I am a CFA L1 candidate, who is currently on Fixed Income analysis. Thank you for your concise explanations and BA II Plus input walkthroughs. Excellent!
You explain it so easily
Clearly explained! Thank you very much!
You are welcome!
Not mathematically adept so not confident with taking the CFA but this small videos gives insightful learnings for me who is working in the investment finance field and seeking on reinforcing my initial weakness....Looking forward to more content
Thanks never knew about the date function
Thanx for making...and I request you please make a video like this on various topics..... hope you upload soon before my August 2021 exam
excellent!
thank you! so helpful.
You're welcome!
your the best
Fabian, I really enjoy your idiot-proof explanations :-)
Great content.😍 Keep up the amazing work 👍. Also do share your social media profile links ✌
You can find the links on my RUclips page banner. Cheers!
Hi Fabian....where can I watch your full lectures ?
a small question
will i have to calculate it manually if the coupon payments are anything other than annually or semi-annually (calculator doesn't to seem any other payment cycles)
there is an option to change C/Y in the calculator setting (would changing it to 4 or 12 then putting 1/Y in the bond calculation give the correct result?)
For the [BOND] sheet, the payment frequency can either be annually or semi-annually. If it is anything besides the two such as quarterly, then you would have to calculate it manually using the TVM worksheet.
I would normally avoid using the P/Y and C/Y options and just adjust [N], [PMT], and [I/Y] directly with the payment frequency
if the bond pays quarterly, then we wont be able to use the calculator? because there are only 2 modes that is 2 times a year, 1 time a year.
of course, appreciate the time and work. it would be interesting hypothesis coming out of you, whether the cfa institute raised the minimum passing rate. i think you would do a solid work on the hypothesis.
yo i just asked the same question and then saw you
there is a setting on the calculator to change coupon payments per year (2nd >>>> I/Y >>>> 4 if quarterly and 12 if monthly)
but then how would we set the bond cycle in the bond function ( 1/Y ?)
Which is fair price for transaction?