Fixed-income investments offer a predictable and steady income stream—an attractive strategy for those seeking to diversify their portfolios to reduce overall risk. Fixed-income securities typically have regular interest payments and a predetermined maturity date. Some common types include fixed-rate bonds, convertible bonds, fixed annuities, treasury securities, and floating-rate notes.
This open-access cheat sheet concisely compiles essential fixed-income valuation formulas, conveniently organized and easily accessible. It provides a quick reference to vital questions:
- How do you calculate yields, fixed and floating rates, accrued interest, and full and flat prices?
- How do you convert the annual percentage rate of a bond to different periodicities?
- What is the relationship between forward rates and spot rates?
Fixed-Income Investments Cheat Sheet is an excellent resource for financial analysts, financial advisors, investment analysts, wealth managers, portfolio managers, and finance students.
Do you wish to navigate the complex world of bond prices and yields? Our Fixed-Income Investments course provides valuable insights into the power of maturity effect, forward rates, and money market instruments.