Get a Sound Understanding of Yield Curve Construction and Knowledge of Forwards with this E-Learning Course

Get a Sound Understanding of Yield Curve Construction and Knowledge of Forwards with this E-Learning Course

DUBLIN, Ireland — Research and Markets (http://www.researchandmarkets.com/reports/c28778) has announced the addition of E-Learning Course: Yield Curves to their offering.

The yield curve is a key concept in the money, bond, and interest rate derivatives markets. It plots the yields of similar quality instruments against their maturities, and shows whether short-term interest rates are higher than long-term rates. A yield curve is constructed by looking at observable market rates and performing any necessary transformations. A sound understanding of yield curve construction and knowledge of forwards, as described in this course, provides the basis for interest rate derivatives pricing.

In this course, you will explore:

— The bootstrapping method for building a yield curve

— The fundamentals of FRAs

— The settlement and valuation of FRAs

— The pricing of FRAs from both the cash and futures market

— The use of futures to build a yield curve

The following tutorials are included in this E-Learning course:

1. Building a Yield Curve

On completion of this tutorial, you will be able to:

— differentiate between a par-coupon yield curve and a zero-coupon yield curve

— bootstrap a zero-coupon yield curve using deposit and swap rates

— plot par-coupon and zero-coupon forward yield curves

2. FRAs – An Introduction

On completion of this tutorial you will be able to:

— define a forward rate agreement (FRA) and cite specific examples where FRAs may be used

— calculate the settlement amount of an FRA and explain how it is valued during its life

3. FRAs – Pricing

On completion of this tutorial you will be able to:

— price an FRA using the cash market

— price an FRA using the futures market

4. Futures – Building a Yield Curve (Even Periods)

On completion of this tutorial you will be able to:

–identify the differences between forward and futures contracts and the limitations that are associated with using futures contracts to generate swap rates

–generate interest rate swap rates for even periods using a strip of short-term futures prices

5. Futures – Building a Yield Curve (Actual Dates)

On completion of this tutorial you will be able to:

–generate interest rate swap rates for actual dates using a strip of short-term futures prices

–explain the concept of convexity bias

This course is designed for:

–new or recent recruits to banking and financial organizations

–dealers/traders

–portfolio managers

–treasury department staff

–sales and marketing executives

–finance and accounting staff

–compliance and regulatory staff

For more information visit http://www.researchandmarkets.com/reports/c28778

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