Yield Measures, Spot Rates, and Forward Rates

Lessons

Sources of Return from Investing in a Bond

How to Calculate Yield to Maturity

How to Calculate Current Yield

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 Bonds

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