(P) Principles of Fixed Income Valuation

Synopsis

Valuation is the process of determining the value of the debt securities. It is also known as “pricing:” of the debt instrument.  In this session, we will explain the fundamental principles of fixed income security valuation and it will be limited to the valuation of option free bonds.

Course Outline

(a)   Estimating the Cash Flow

(b)   Determining the Appropriate Discount Rates

(c)   Discounting the Expected Cash Flows:

(i)     Present valuation properties and

(ii)    Relationship between coupon rate, discount rate and price relative to Par value

(d)   Multiple Discount Rate Valuation

(e)   Semi-Annual Cash Flow Valuation

(f)    Valuing a Zero Coupon Bond and

(g)   Valuing a Bond between coupon payments

Level: Basic to Intermediate

Who should attend: Investment, Financial professionals, traders, Financial students , non – finance professionals

Trainer Profile

Pius has more than 20 years of financial experience in both financial institutions and foreign enterprises, of which he has 7 years of active trading experience in currencies, swaps, and the money markets and 5 years in trading the equities and bond markets including emerging debt market. He has trained traders and treasury traders for clients and conducted seminars in banking operations. Currently, he is a licensed trading representative for both futures & securities markets. Pius holds a Bachelor in Business Administration from Royal Melbourne Institution of Technology, a Diploma in Management Studies from SIM and Diploma in Investment from IBF.

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