Sources of Return from Investing in a Bond- A fixed-income security, such as a bond, provides three different types of returns, and a yield meas...

## COURSE

## Yield Measures, Spot Rates, and Forward Rates

- The current yield of a bond measures the interest income that an investor gets from the bond. It’s r...
- Yield to Maturity (YTM) is the most commonly used and comprehensive measure of risk. In fact, if som...
- In the bond market the convention is to annualize the semi-annual yield by simply doubling it. So, i...
- [Calculating yield to maturity](https://financetrain.com/how-to-calculate-yield-to-maturity/) can so...
- [Yield to maturity](https://financetrain.com/how-to-calculate-yield-to-maturity/ "How to Calculate Y...
- As we learned in the previous article, coupon paying bonds have reinvestment risk because the invest...
- In the US, most bonds are generally semi-annual coupon paying bonds, so we calculate the semi-annual...
- For callable bonds that are likely to be called before their maturity, it is more useful to calculat...
- For some debt products such as [mortgage-backed securities](https://financetrain.com/introduction-to...
- A spot rate curve, also known as a zero curve refers to the yield curve constructed using the spot r...
- The simplest way to calculate the value of a bond is to take the cash flows of the bond till its mat...
- Nominal Spread, or the nominal yield spread, is the most simple yield spread for non-Treasury bonds....
- The problem with [**nominal spread**](https://financetrain.com/nominal-spread/ "Nominal Spread") is ...
- The [**Z-spread**](https://financetrain.com/z-spread-definition-and-calculation/ "Z-Spread: Definiti...
- Till now we have looked at the spot rates and we also learned about how to [construct spot rate curv...
- Once we have the [**spot rate curve**](https://financetrain.com/bootstrapping-spot-rate-curve-zero-c...
- We have seen that a [bond can be valued using spot rates](https://financetrain.com/how-to-price-a-bo...

## LESSONS

How to Calculate Current Yield

How to Calculate Yield to Maturity

Bond Equivalent Yield Convention

Yield to Maturity (YTM) Approximation Formula

YTM and Reinvestment Risk

Factors Affecting Reinvestment Risk

Calculate Bond-Equivalent Yield of Annual-Pay Bond...

How to Calculate Yield to Call of a Bond

Cash Flow Yield

Bootstrapping Spot Rate Curve (Zero Curve)

How to Price a Bond Using Spot Rates (Zero Curve)

Nominal Spread

Z-Spread: Definition and Calculation

Option-adjusted Spreads (OAS)

What are Forward Rates?

How to Calculate Forward Rates from Spot Rates?

How to Value a Bond Using Forward Rates