Fixed Income Securities

[IFT Team]

Please use this discussion thread to ask and discuss queries related to Fixed Income Securities topic.

[Mitesh Mohnot]

Hi,

Can anyone help me with the answer to the following question along with the explanation

Which of the foll bonds would be the best one to own if the yield curve shift down by 50bps at all maturities

A   4-year 8%, 8% YTM

B   5 year 8%, 7.5% YTM

C   5 year 8.5%, 8% YTM

[Arif Irfanullah]

When interest rates go down, longer term bonds will do better. So option A is out.

Low coupon is better because you are getting more of your money later... and at lower interest rate the present value will be higher.

Hence best option is B.

 

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[Ilyas Abdulin]

I was wondering will the slides on FIS be uploaded as free slides?

[Arif Irfanullah]

FIS slides will be uploaded in the next day or so.

 

 

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[God-is-Great]

Hi

Could you please upload 'Fundamentals of Credit Analysis' slides from FIS as free material. many thanks in advance !!

On Saturday, October 12, 2013 10:26:42 AM UTC+5:30, Arif Irfanullah wrote:

FIS slides will be uploaded in the next day or so.

 

 

On Sat, Oct 12, 2013 at 12:26 AM, Ilyas Abdulin <hurric...@gmail.com> wrote:

I was wondering will the slides on FIS be uploaded as free slides?

On Sunday, June 2, 2013 3:25:36 PM UTC-4, IFT Team wrote:

Please use this discussion thread to ask and discuss queries related to Fixed Income Securities topic.

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[Ilyas Abdulin]

Hello everybody, 

can anybody explain me what is the difference between

• Convexity adjustment with regard to Price => here if yield changes by 1% then P= -Duration plus + C*delta_y_squared
• Return impact with convexity adjustment => here if spread changes by 1% then Yield = -Duration + 0.5 C*delta_y_squared.

Why first formula does not have 0.5 and second does. And isn't yield spread is the same as change in yield. How are they different?

I hope my question makes sense,

thank you,

Ilyas

On Sunday, June 2, 2013 3:25:36 PM UTC-4, IFT Team wrote:

[Shiraz Rajwani]

Hi

Can any one tell me that how can I get access to the free videos?

Regards

Shiraz Rajwani

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[Arif Irfanullah]

Follow this link:

http://www.irfanullah.co

Then click on the Free Videos option.