What is the best way to learn about the bond market?

Understanding bond market prices The easiest way to understand bond prices is to add a zero to the price quoted in the market . For example, if a bond is quoted at 99 in the market, the price is $990 for every $1,000 of face value and the bond is said to be trading at a discount.

Bonds are an investment product where you agree to lend your money to a government or company at an agreed interest rate for a certain amount of time . In return, the government or company agrees to pay you interest for a certain amount of time in addition to the original face value of the bond.

Should I sell bonds when interest rates rise?

If you sell your bonds as soon as someone hints at the word "hike," you may be jumping the gun. When the market consensus is that a rate increase is right around the corner, it's time to sell and reinvest the proceeds in higher-paying bonds . One caveat applies to short-term holdings or those that are near maturity.

What is the best strategy to buy bonds?

There are many strategies for investing in bonds that investors can employ. The buy-and-hold approach appeals to investors who are looking for income and are not willing to make predictions. The middle-of-the-road strategies include indexation and immunization, both of which offer some security and predictability.

How much interest will you receive annually on a 7% coupon rate bond with a $1000 face value?

For example, a $1,000 bond with a coupon of 7% pays $70 a year . Typically these interest payments will be semiannual, meaning the investor will receive $35 twice a year.

How do bonds make money for beginners?

A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds . In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.

What are the best bonds to invest in 2024?

Top 8 bonds to invest in for the long term Name Ticker Yield Vanguard Tax-Exempt Bond ETF (NYSEMKT:VTEB) 3.5% Vanguard Short-Term Corporate Bond Index Fund (NASDAQMUTFUND:VSCSX) 5.1% Guggenheim Total Return Bond Fund (NASDAQMUTFUND:GIBIX) 5.1% Vanguard Total International Bond Index Fund (NASDAQ:BNDX) 3.2% 4 more rows Jul 25, 2024

How to analyze the bond market?

A related way to analyse bond prices and yields is by using a demand and supply framework . Like any market, the price (and yield) of bonds is influenced by the amount of bonds investors demand and the amount of bonds that the borrowers of funds decide to supply.

How do I learn to trade bonds?

How to trade government bonds futures Create an account or log in. Decide whether you want to trade spread bets or CFDs. Pick a government bond futures contract from within our trading platform. Select 'buy' to go long, or 'sell' to go short. ... Open and monitor your position.

What do I need to know about bonds before investing?

Some of the characteristics of bonds include their maturity, their coupon (interest) rate, their tax status, and their callability . Several types of risks associated with bonds include interest rate risk, credit/default risk, and prepayment risk. Most bonds come with ratings that describe their investment grade.

How do you access the bond market?

Unlike stocks, bonds aren't publicly traded on an exchange. Instead, bonds are traded over the counter, meaning that you must buy them from brokers .

Wall Street Prep – Crash Course in Bonds

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Wall Street Prep – Crash Course in Bonds

Price:$99
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GetWall Street Prep – Crash Course in Bondsright now!

A step-by-step course designed for those pursuing a career in fixed income research, investments, sales and trading or investment banking (debt capital markets).

This course will teach you all about bonds. First, we’ll take a look at the role of bonds in financing governments, corporations, households and financial Institutions around the world. Next, we’ll dive into bond math. You’ll learn the various calculations and concepts required to accurately analyze the large variety of fixed income products. We’ll start slow, but will quickly build up to some of the most traditionally confusing bond concepts: convexity, duration, spot rates, forward rates and the drivers of changes to the all-important yield curve. We conclude with a discussion of credit analysis and an overview of debt capital markets. Enjoy the course!

Why You Should Take This Course

If you’ve ever tried to learn about bonds – either through a textbook, a university class, or CFA training materials, you’ve most likely discovered that it quickly gets painful. We’ll be blunt: bond analysis is usually taught horribly. Beyond super-basic concepts of bond pricing and interest rate valuation, concepts like convexity, modified duration and forward curves are introduced with no connection to how they relate to real-world investment strategies.

We made this course with one overall objective in mind: to make something truly different than what’s out there now. Something that completely demystifies fixed income analysis and gives people a clear window to the inside.

We feel certain we’ve accomplished this. We take you step-by-step through the core concepts you need, and completely cut out concepts you’ll never use. The result is an intuitive look at the use of bonds in fixed income research, sales and trading and investment banking.

We’ll be blunt: bond analysis is usually taught horribly. Our course completely demystifies fixed income analysis to give people from the outside a clear window to the inside.

What You Will Learn

Fixed income market overview
Bond math basics
Yield calculations and conventions
Money Market math
Interest rate risk
Real world bond pricing nuances
Callable bonds
The yield curve
Nominal spread & Z-spread
OAS
Spot rates
Realized compound yield
Holding period yield
Forward rates
Credit analysis
Debt Capital Markets

Wall Street Prep’sCrash Course in Bonds is used at top financial institutions and business schools.

Exam and Certification

There is a 3-hour examination at the end of the course. You are eligible to take the exam for 24 months from the date you registered for the course. Those who complete the exam and score above 70% will receive a Certification inBondAnalysis. The exam is challenging and covers the most difficult concepts covered in the program.

Course Highlights

Used on the Street

This is the same comprehensive course our corporate clients use to prepare their analysts and associates.

1.5x, 2x video speed

Save loads of time by bumping up playback speed to breeze through lessons at your own pace.

Taught by bankers

Our instructors are former I-bankers who give lessons real-world context by connecting it to their experience on the desk.

Instructor Support

Have a question on course content? Communicate directly with instructors by asking questions throughout the course.

Chapter 1: Fixed income market overview

What is fixed income?
Size of the bond market
Bond market geographic breakdown

Chaper 2: Bond Basics

Basic bond terms
Basic bond math
Using Excel’s RATE() function
Reinvestment assumption of YTM
YTM vs. current vs. nominal yield
Annuities
Bond price as present value of a bond’s cash flows
Simple bond price exercise
More bond terms
Bond issuance costs
The price/yield relationship
Primary vs. secondary bond market
The bid/ask spread

Chapter 3: Yield calculations and conventions

Coupon frequency and bond equivalent yield (BEY)
BEY vs Effective annual yield (EAY)
Converting from BEY to EAY
Compounding conventions of 0-coupon bonds

Chapter 4: The money market math

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Wall Street Prep – Crash Course in Bonds - KICK MARKETERS (2024)

Description

Wall Street Prep – Crash Course in Bonds

Why You Should Take This Course

What You Will Learn

Exam and Certification

Course Highlights

Used on the Street

1.5x, 2x video speed

Taught by bankers

Instructor Support

Reviews

FAQs

What is the best way to learn about the bond market? ›

How do you access the bond market? ›

Name	Ticker	Yield
Vanguard Tax-Exempt Bond ETF	(NYSEMKT:VTEB)	3.5%
Vanguard Short-Term Corporate Bond Index Fund	(NASDAQMUTFUND:VSCSX)	5.1%
Guggenheim Total Return Bond Fund	(NASDAQMUTFUND:GIBIX)	5.1%
Vanguard Total International Bond Index Fund	(NASDAQ:BNDX)	3.2%