Fixed Income Valuation & Risk Management

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Fixed Income Valuation & Risk Management

Instructor: EDUCBA

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4 modules

Gain insight into a topic and learn the fundamentals.

9 hours to complete

Flexible schedule

Learn at your own pace

4 modules

Gain insight into a topic and learn the fundamentals.

9 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Analyze bond valuation and price–yield relationships.
Apply pricing models for futures, forwards, and FRAs.
Manage interest rate risk using derivatives and hedging strategies.

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There are 4 modules in this course

Master fixed income valuation and derivative pricing to manage interest rate risk and make smarter financial decisions. Learn how to analyze bonds, futures, and forward contracts in real-world scenarios.

This course provides a structured approach to fixed income valuation, starting with bond pricing fundamentals and advancing to derivative applications. You will learn how to analyze price–yield relationships, evaluate callable and putable bonds, and apply yield measures for accurate valuation. Through practical modules, the course covers forward and futures contracts, cost of carry models, and arbitrage opportunities. You will also explore Forward Rate Agreements (FRAs) and understand how they are used to hedge interest rate risk in financial markets. By the end of the course, you will be able to apply valuation techniques, interpret derivative pricing models, and manage financial risk effectively. Ideal for finance professionals and aspiring analysts, this course builds strong quantitative and analytical skills required for roles in investment analysis, treasury, and risk management.

This module introduces the core principles of fixed income valuation, including bond pricing mechanics, coupon structures, yield relationships, and embedded bond features such as callable and putable options. Learners build a strong conceptual foundation in present value techniques and understand how interest rate movements influence bond prices and returns.

What's included

9 videos4 assignments

9 videosTotal 68 minutes

Introduction to Fixed Income Valuation10 minutes
Understanding Bond Price and Bond Yield8 minutes
Types of Bond in Market9 minutes
Concept of Coupon Paying Bond9 minutes
Callable Bond and Putable Bond Options10 minutes
Method of Puttable Bond9 minutes
Summary on the Bond Functions3 minutes
Valuation of the Bonds5 minutes
Example on Valuation of the Bonds5 minutes

4 assignmentsTotal 60 minutes

Graded - Foundations of Bond Valuation30 minutes
Fixed Income Basics & Market Overview10 minutes
Bond Structures & Embedded Features10 minutes
Core Valuation Principles in Action10 minutes

This module deepens understanding of bond yield measures, coupon frequency adjustments, and callable bond pricing dynamics. It also introduces arbitrage reasoning and derivative valuation fundamentals, enabling learners to assess refinancing risk, yield comparisons, and pricing inefficiencies in fixed income markets.

What's included

8 videos4 assignments

8 videosTotal 50 minutes

Example on Yield to Put5 minutes
Selecting the Bond Type7 minutes
Determining the Frequency of the Coupon7 minutes
Call Price for Callable Bond5 minutes
Issuing Callable and Semi Annual Bond5 minutes
Context of Derivatives Valuation7 minutes
Constructing a Hypothetical Arbitrage8 minutes
Evaluating the Scenarios5 minutes

4 assignmentsTotal 60 minutes

Graded - Yield Analysis & Callable Bond Mechanics30 minutes
Yield Calculations & Bond Selection10 minutes
Callable Bonds in Practice10 minutes
Introduction to Derivatives Thinking10 minutes

This module explores forward and futures contracts within fixed income and equity markets, covering pricing mechanisms, cost of carry models, payoff structures, marking to market, and counterparty risk management. Learners develop applied understanding of derivative valuation and hedging strategies.

What's included

9 videos4 assignments

9 videosTotal 61 minutes

Practical Example on Forward Contracts7 minutes
Practical Example on Forward Contracts Continues8 minutes
Determining the Market Value11 minutes
Example on Forward Contracts5 minutes
Practical Illustrations on Forward Stocks5 minutes
Value of Derivative Contract5 minutes
Forward Contracts in Context of Bond8 minutes
How Futures and Contracts operate6 minutes
Example on Futures and Contract7 minutes

4 assignmentsTotal 60 minutes

Graded - Forward Contracts & Derivatives Applications30 minutes
Forward Contracts — Practical Foundations10 minutes
Valuation of Forward & Stock Contracts10 minutes
Forward & Futures in Bond Markets10 minutes

This module focuses on index futures pricing models and Forward Rate Agreements (FRAs), emphasizing cost of carry methodology, interest rate risk management, annualized rate calculations, and FRA settlement mechanisms. Learners gain practical insight into hedging and managing interest rate exposure using derivative instruments.

What's included

5 videos3 assignments

5 videosTotal 30 minutes

Formulas for Index Futures4 minutes
Forward Rate Agreement7 minutes
Purpose of entering forward rate agreement6 minutes
Annualised and Unannualised Rates6 minutes
Fundamental steps for FRA7 minutes

3 assignmentsTotal 50 minutes

Graded - Futures Pricing & Forward Rate Agreements (FRA)30 minutes
Index Futures & Pricing Mechanics10 minutes
FRA Applications & Interest Rate Concepts10 minutes

Instructor

EDUCBA

1,150 Courses274,737 learners

Offered by

EDUCBA

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