Fixed Income Securities Mathematics: Bond Mathematics, Calculations, Valuations & Examples

In this article, we will discuss about Fixed Income Mathematics, Valuations topics of Bonds or Fixed Income Securities, Calculations for Fixed Income Securities and how the market for Fixed Income Securities works?
Let's start with the basics:
Fundamental or Basic Concepts of Fixed Income Mathematics:

- The difference between Interest Rates, Yields and Rates of Return Compared

- Interest Rate Calculation Conventions - Simple Interest Versus Compound Interest

- Time Value of Money - The basic of Bond pricing - Present Values and Future Values

Fixed Income Market Pricing and Yield Conventions:

- Pricing Coupon and Zero Coupon Bonds

- Day Count Conventions

- Accrued Interest

- Pricing Money Market Instruments

Yield Curves and their uses:

- Types of Yield Curves and their Constructions

- Applications of Yield Curves to Fixed Income Pricing and Analysis

Mortgaged Backed Securities:

- Pass Through Security Pricing and Yield Conventions

- Quantifying Prepayment Speed


Fixed Income Futures:

- T-Note and T-Bond Futures Contracts

- Eurodollar and T-Bill Futures

While attending such a course which involves calculations and mathematics, one should always have a calculator available