https://gdpark.blog/tags/bonds/Recent content in Bonds on gdpark.blogHugoenSat, 08 Jan 2022 00:00:00 +0000https://gdpark.blog/posts/corporate-finance-04-valuation-of-bonds-and-stocks/Sun, 16 Oct 2016 00:00:00 +0000https://gdpark.blog/posts/corporate-finance-04-valuation-of-bonds-and-stocks/Breaking down how to slap a price tag on bonds and stocks using present value formulas — and yes, yield to maturity is just as annoying to solve as it sounds.https://gdpark.blog/posts/corporate-finance-13-cost-of-capital/Wed, 21 Dec 2016 00:00:00 +0000https://gdpark.blog/posts/corporate-finance-13-cost-of-capital/Before diving into capital structure theory, let’s get the basics straight — cost of debt, cost of equity, and why k is the discount rate that actually matters.https://gdpark.blog/posts/cfa-l1-15-effective-interest-rate-method-a-complete-accounting-guide/Sat, 03 Jul 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-15-effective-interest-rate-method-a-complete-accounting-guide/Breaking down the effective interest rate method and amortized cost from the issuer’s side — because honestly, I had to fully get it myself before I could explain it!https://gdpark.blog/posts/cfa-l1-16-bonds/Sun, 25 Jul 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-16-bonds/Cruising through bonds for CFA prep — par, discount, and premium bonds, how market interest rates set the price, and how it all lands on the financial statements.https://gdpark.blog/posts/cfa-l1-28-what-is-a-bond-the-fundamental-difference-from-equity/Sun, 24 Oct 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-28-what-is-a-bond-the-fundamental-difference-from-equity/Kicking off Fixed Income for CFA Level 1 — what a bond actually is, why interest is called a coupon, and how it’s fundamentally different from a stock.https://gdpark.blog/posts/cfa-l1-29-types-of-bonds/Sun, 31 Oct 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-29-types-of-bonds/A quick rundown of bond types by how they pay interest — floaters, inverse floaters, PIK bonds, index-linked, and the contingency provisions baked right in.https://gdpark.blog/posts/cfa-l1-30-key-fixed-income-terminology/Sun, 05 Dec 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-30-key-fixed-income-terminology/A casual rundown of fixed income exam keywords — LIBOR, bond issuance methods, underwritten vs. best efforts offerings, primary dealers, and shelf registration.https://gdpark.blog/posts/cfa-l1-33-understanding-geometric-mean-return-for-the-yield-curve/Sat, 25 Dec 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-33-understanding-geometric-mean-return-for-the-yield-curve/Finally tackling the yield curve — but first, why geometric mean return (not arithmetic mean) is the only correct way to think about % gains over time.https://gdpark.blog/posts/cfa-l1-35-yield-spread/Fri, 31 Dec 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-35-yield-spread/A casual breakdown of yield spreads — what G-spread and I-spread actually mean, why swap rates beat LIBOR as the private-sector risk-free rate, and how traders decide if a bond is cheap or rich.https://gdpark.blog/posts/cfa-l1-36-price-risk-reinvestment-risk-and-duration/Sat, 08 Jan 2022 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-36-price-risk-reinvestment-risk-and-duration/YTM secretly assumes you reinvest every coupon at YTM itself — and that hidden assumption is exactly where price risk and reinvestment risk come from.