Bond Valuation Mastery - Learn To Value Bonds From Scratch.
4.5 (321 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
1,953 students enrolled

Bond Valuation Mastery - Learn To Value Bonds From Scratch.

Become A PRO At Valuing One Of The Most Important Fixed Income Securities | Finance Fundamentals | Valuation Series
4.5 (321 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
1,953 students enrolled
Last updated 5/2020
English
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Current price: $83.99 Original price: $119.99 Discount: 30% off
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This course includes
  • 3.5 hours on-demand video
  • 10 articles
  • 44 downloadable resources
  • 1 Practice Test
  • Full lifetime access
  • Access on mobile and TV
  • Assignments
  • Certificate of Completion
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What you'll learn
  • Gain a solid foundation of the core fundamentals that drive the entire Bond Valuation process.
  • Understand Bonds inside out, including what they are, their characteristics, types, payoff structure, ratings, and more.
  • Apply what you learn immediately with example question walkthroughs, and progressively challenging quizzes with the most detailed solutions, ever.
  • Become a PRO at Valuing Zero Coupon (Deep Discount) Bonds, Straight / Vanilla Bonds, and Consols manually and on Excel®.
  • Learn the powerful relationship between the Coupon Rate and the Yield to Maturity that most textbooks simply don't teach.
  • Estimate the Yield to Maturity of bonds manually as well as on Excel®
Requirements
  • No prior knowledge required. We start from the very basics. And build you to a Bond Valuation Guru.
  • It's okay if math freaks you out. Seriously. Every single equation is explained one variable at a time. We rip it apart to its core, and show you how simple it really is.
  • You'll need a calculator; a pen and paper would be useful.
Description

Explore how to value one of the most versatile fixed income securities, inside out. Apply rock solid finance fundamentals to value Straight / Vanilla Bonds, Consols, and Zero-Coupon (“Deep Discount”) Bonds as well as their Yields, from scratch. Do this manually, and on Excel® and Google Sheets.

With no prior knowledge required, and a curriculum that's designed for distinction, this course will take you from zero to PRO in one of the most important aspects of modern day Finance. And build your finance fundamentals up from scratch, to hold you in good stead forever.

6 SECTIONS TO MASTERY.

Use our structured learning path, or dive right in to a specific concept you’re struggling with.

Introduction to Bonds

  • Get the basic finance fundamentals right, first time – so you learn once and retain it forever.

  • Explore what bonds are, including their types and characteristics.

  • Discover the “trading status” of bonds and see how ratings work.

The Fundamentals

  • Gain a solid command over the core finance fundamentals that drive the entire bond valuation process.

  • Understand the powerful logic and intuition behind discounting future cashflows.

  • Witness the power of compounding cashflows, including why we use (1+r) and not just r.

Valuing Bonds (Simple Cases)

  • Value a Zero-Coupon Bond from scratch.

  • Estimate the price of a Straight / Vanilla bond.

  • Value a Consol (aka ‘Perpetual Bond), and see why the formula works.

Valuing Bonds (Advanced)

  • Value bonds with semi-annual and quarterly coupons.

  • Explore the impact of compounding on bond prices.

  • See first hand how a change in the yield impacts the value of a bond.

Yield To Maturity Fundamentals

  • Explore the pre-requisites for estimating the yield.

  • Learn what the Net Present Value (NPV) is.

  • Understand the Internal Rate of Return (IRR) and see how it relates to the yield.

Estimating Yield To Maturity (YTM)

  • Calculate the YTM of a Zero-Coupon Bond from scratch.

  • Estimate the YTM of a Consol (aka ‘Perpetual Bond’).

  • Apply your knowledge of NPV and IRR to estimate the yield of a vanilla bond, manually and on Excel.


DESIGNED FOR DISTINCTION

Discover the intuition behind the bond valuation process and gain a solid foundation in Finance Fundamentals thanks to:

A Solid Foundation

You’ll gain a solid foundation of the core fundamentals that drive the entire bond valuation process.

Example Walkthroughs

Every major concept is taught with example question walkthroughs, so you can literally see how we value bonds from scratch.

Loads of Helpful Practice Activities

Apply what you learn immediately with 135 practice questions, all with impeccably detailed solutions.

One Page Cheat Sheets & Resources

Mathematical proofs, one page cheat sheets, workable Excel® & Google Sheets spreadsheets – all included.


Say goodbye to endless memorising.

Engage with carefully thought out, clutter-free, and engaging study materials that focus on the 20% finance fundamentals that drive 80% of the results.

Easily follow through complex concepts with great visuals that don’t overdo it.

Explore why bonds are valued the way they are, instead of memorising formulas without understanding them.

There really always is a reason for everything.


Feel your confidence rise.

Apply what you learn immediately in example question walkthroughs and progressively challenging quizzes with impeccably detailed solutions.

Engage with over 100 questions ranging from simple true and false ones to more complex problems that take you outside your comfort zone.

Questions are relevant for Ivy League / Russell Group University students as well as professionals studying for the ICAEW CFAB, ACA, ACCA, and CFA qualifications.

All questions designed in-house, by Professional Tutors with Russell Group Distinctions.


See how & why  the equations work.

Learn why we divide some variables by something, and multiply other variables by something else. Get past the painful approach of memorising countless equations.

Not only will we rip apart each equation one variable at a time, we’ll also give you mathematical proofs that show the equation’s logic one step at a time.

Save yourself time and effort by understanding why the equation works the way it does. Then go out and create your own equations thanks to your new rock solid finance fundamentals.

____________________________________________________________________________________________________

Here's what you get. And this is exactly why this is the only course you'll ever need to take to master Bond Valuation:

  • Over 3.5 hours of on-demand video content, with each concept broken down part by part, variable by variable, one equation at a time. Starting from the very basics, and building you to a point where you can handle more complex problems.

  • Student-centric, easy-to-read learning materials that will change the way you look at lecture notes. Seriously.

  • Quizzes and assignments that challenge you, progressively. With the most detailed solutions you've ever seen.

  • An easy to apply 'Discount Factor Table', with a built-in how to guide.

  • Mathematical proofs for the mathematically curious!

  • An instructor who's insanely passionate about Finance and Finance Fundamentals, and obsessed with helping you win.

____________________________________________________________________________________________________

As you can tell, we're new to Udemy. But we've been helping students and professionals master Finance and Accounting across Europe for a while now. Here's what our 1:1 Tuition Clients say about us.

We're proud of our students, and inspired by these stories - we decided to share them (unedited) with you...

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- Abdulaziz, BA (Hons), International Management

"Fervent goes above and beyond the call of duty. First, they help you get the basics right and then assist you until you get a firm grip of your module. Fervent provides an extremely professional and patient environment. Doesn’t matter how many questions you have or silly you think they are, they encourage all of it. I never would have passed my module rather score a merit in it if it wouldn’t have been for Fervent."

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My tutor is specialized not only in the teaching of Accounting and Finance but also very familiar with the relevant knowledge in the subjects such as Marketing and Management. This is why I trust this person at an initial point along with his kind, friendly and very patient characteristics (e.g. I’m always encouraged by my tutor during the session with him, often to hear: if you really want it and then you can do it and will make it with no doubts).

“Skilled worker ushers in the gate, leads a pious life depending on individual.” This is a Chinese old saying which I can still remember vividly because it was what my tutor had told me in my  with him and made me believe an excellent learning outcome and a constructive learning process requires the hardworking from both of us. The record shows we did it. This is another reason I like Fervent as in the session with my tutor you see his hardworking as for the preparation for each session and in making the sessions distinctive from cliché-ridden teaching-and-listening classes by exploring the best way and the most suitable set of teaching methods to provide the student with the best value for money.

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Who this course is for:
  • University / College students
  • ACA, ACCA, CFA, other Professional Students
  • Finance Managers, especially those from a Non-Finance Background
  • Investors
  • Analysts, aspiring Investment Bankers
  • Anyone who wants to learn how to value bonds!
Course content
Expand all 28 lectures 03:44:38
+ Special Announcement
1 lecture 01:38
Coronavirus [Special Announcement]
01:38
+ Introduction to Bonds - Getting The Basics Right.
5 lectures 41:11

You'll learn what bonds are, and gain an insight into a typical timeline for bond payoffs. You'll also learn why investing in bonds makes sense, and why entities choose to issue bonds.

What Are Bonds? Why Buy Them & Why Issue Them?
11:11
What Are Bonds? Why Buy Them & Why Issue Them? [Quiz]
7 questions

This video sets an important framework, walking you through the 4 characteristics that all bonds have, and the 5 characteristics that most bonds have. You'll also be introduced to the notations we'll use for the rest of this course, and benefit from our jargon buster which will help ensure you don't get overwhelmed / intimidated by the terminologies!

Preview 11:40
Bond Characteristics [Quiz]
8 questions

While there are hundreds, if not thousands of "types" of bonds, most if not all of them derive their roots from 3 Types of Bonds. In this video, you'll learn what those 3 types are, as well as their payoff timelines. This will set the initial foundation for later sections, wherein you'll learn to value each of these 3 types of bonds from scratch.

Preview 07:11
Types of Bonds & Their Payoffs [Quiz]
7 questions

This video shows you how a bond's trading status is a function of its par and price. You'll also learn about the usefulness of the status from a risk standpoint.

Bond's "Trading Status"
06:10
Bond's "Trading Status" [Quiz]
5 questions
What Are Bond Ratings? How Do They Work?
04:59
Bond Ratings [Quiz]
8 questions
+ The Fundamentals
3 lectures 39:22

In this video, we'll build your foundation by gaining a solid understanding of the core fundamentals that drive the entire bond valuation process.

Bond Valuation Fundamentals
11:03
Bond Valuation Fundamentals [Quiz]
8 questions
Understanding Discounting
16:54
Understanding Discounting [Quiz]
7 questions

In this video, you'll learn why we divide cashflows by (1+y) instead of say, (1-y) or (1/y) or anything else. You'll also learn why we raise (1+y) to the power of a specific number. Ultimately, this is all because of the power of compounding - a vital concept, especially for the more advanced valuation scenarios you'll learn later in the course.

Understanding the Power of Compounding
11:25
Understanding the Power of Compounding [Quiz]
6 questions
+ Valuation of Bonds (The Simple Cases)
3 lectures 34:58

Now that you know the basics of bonds, and the core fundamentals that drive the entire bond valuation process, we can go deeper and learn how to value bonds. We'll start with the easiest case - Zero Coupon Bonds.

Preview 08:42
How to value Zero Coupon Bonds? [Quiz]
6 questions

You'll learn how to value the most "typical" bond - Straight / Vanilla bonds, i.e. those that pay a series of coupons every period, followed by a Par at maturity.

How to value Straight / Vanilla Bonds?
19:00
How to value Straight / Vanilla Bonds? [Quiz]
7 questions

Starting from the generalised equation for the Price of a bond, you'll learn how to derive the pricing equation for a Consol, and then apply it to value Consols.

How to value Consols / Perpetual Bonds?
07:16
How to value Consols / Perpetual Bonds? [Quiz]
6 questions
+ Valuation of Bonds (Advanced)
2 lectures 37:40

Now that you know how to value bonds in the simple cases, we can step it up a notch and deal with more complex problems. You'll learn how to value vanilla bonds with semi-annual and quarterly coupon frequencies (i.e. "non-annual" frequencies).

Valuing bonds with semi-annual and quarterly coupons
17:57
Valuing bonds with semi-annual and quarterly coupons [Quiz]
7 questions

Contrary to popular belief, yields do change - albeit not very frequently. In this video, you'll learn how to value bonds when the yield changes.

Valuing bonds when the yield changes
19:43
Valuing bonds when the yield changes [Quiz]
6 questions
+ Pre-Requisite Concepts For Estimating The Yield (Complimentary Learning Content)
3 lectures 18:41
What is the Net Present Value?
09:03
What is the Net Present Value? [Quiz]
5 questions
What is the Internal Rate of Return (IRR)?
09:13
What is the Internal Rate of Return (IRR)? [Quiz]
5 questions
+ Estimating the Yield to Maturity (YTM)
2 lectures 28:27

All this while, we assumed the yield was known / given. In this video, you'll learn how to calculate it. Using simple algebraic manipulations, you'll learn how to calculate the yield for a Consol and Zero Coupon Bond, and also learn to calculate the 'Current Yield' for a Vanilla bond.

Preview 07:27
Calculating the YTM (I, simple case with ZCBs & Consols) [Quiz]
6 questions

You'll learn how to estimate the yield for a straight / vanilla bond. This is a relatively advanced topic, and does have pre-requisites. Learning this requires an understanding of the NPV and IRR. While these topics are covered in great depth in our course on Investment Appraisal Mastery, we've included sufficient content relating to both concepts for free in the 'Pre-requisites to Estimating The Yield' section.

Calculating the YTM (II, advanced case with Straight / Vanilla Bonds)
21:00
Calculating the YTM (II, advanced case with Straight / Vanilla Bonds) [Quiz]
5 questions
This assignment gives you the opportunity to apply your knowledge of estimating the yield for straight / vanilla bonds.
Estimating The Yield (Advanced) [Assignment]
2 questions
+ Revisiting the example at the start.
1 lecture 00:25
Revisiting Alpha, Bravo, & Charlie.
00:25
You're now going to apply all your knowledge, and identify which one(s) is / are overvalued.
Revisiting Alpha, Bravo, & Charlie [Assignment]
4 questions
+ Final Step To Mastery - The Test.
1 lecture 00:27

This final test is designed to evaluate your knowledge of Bonds inside out. Covering questions relating to the basics of bonds through to advanced concepts including bond valuation and estimation of the yield.

Final Step To Mastery - Valuing Bonds From Scratch.
20 questions
Bond Valuation Cheat Sheet
00:27