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Fixed Income Valuation

Interest rate models --> Derivative pricing --> Bond pricing methods --> bond risk methods

Numerical methods for valuing fixed income securities: bonds, swaps, options, etc.

Caps, floors, collars. Swaps, swaptions, etc. Bonds, bond options, etc.

Work on First

Getting rate data for pricing

Bond Pricing / generating cash flows

Duration: Macaulay, Modified, Effective, etc.

Bond Pricing

Bond Option Pricing

Swap Pricing

Cap & Floor Pricing

Caps and floor are interest rate derivatives that are most commmonly used for hedging against interest rate volatility, either for borrowers or lenders.

Evaluating Risk

Macaulay duration, modified duration, 'dirty duration.'

Duration, convexity, spreads, spead duration, key rate duration, etc.

References

"The Handbook of Mortgage-backed Securities" 6th Edition, Frank J. Fabozzi
"Fixed Income Finance: A Quantitative Approach" Mark Wise, Vineer Bhansali
"Interest Rate Models: Theory and Practice" 2nd Edition, Damiano Brigo, Fabio Mercurio