About this Lecture

This lecture instructs IMAC candidates on the characteristics and analysis of debt investments including:

• relationship between interest rates and inflation;
• the definition and difference between nominal and real returns;
• the concept, purpose and features of a bond;
• the various sectors of the bond market;
• how to calculate different measures of yield;
• the key risks associated with investing in bonds;
• how to calculate the present value of a bond, the value of a coupon bond, and value of a zero-coupon bond;
• the importance and application of premiums and discounts;
• reinvest...