Instructional Video: Interest Rates

Tuckman, Fixed Income Securities, Chapter 2: Spot, Forward and Par Rates is a 30 minute instructional video analyzing the following concepts:

* Calculate and describe the impact of different compounding frequencies on a bond’s value.
* Calculate discount factors given interest rate swap rates.
* Compute spot rates given discount factors.
* Define and interpret the forward rate, and compute forward rates given spot rates.
* Define par rate and describe the equation for the par rate of a bond.
* Interpret the relationship between spot, forward and par rates.
* Assess the impact of maturity on the price of a bond and the returns generated by bonds.
* Define the “flattening” and “steepening” of rate curves and construct a hypothetical trade to reflect expectations that a curve will flatten or steepen.

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