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Ch 11: Fixed-Income Securities

About This Chapter

Enhance your understanding of fixed-income securities with help from this chapter's entertaining lessons, short quizzes and practice exam. Use these study resources to make your preparations for an upcoming test quick and effective.

Fixed-Income Securities - Chapter Summary

This online chapter offers access to a variety of engaging lessons designed to improve your comprehension of fixed-income securities. These lessons delve into topics that include bond valuation, credit risk, yield spread and methods of credit risk management. Feel free to review this chapter at your own pace. When finished, you will be able to:

  • Define and list types of fixed-income securities
  • Describe the characteristics and issuing procedures of bonds
  • List types of government securities
  • Understand bond market strategies
  • Explain the term structure of interest rates and models of interest rate risk
  • Detail how securities prices are impacted by option characteristics
  • Discuss the purpose of structured products
  • Share differences between fixed-income portfolios and investment portfolio types

Tailor your review of this chapter to your unique study needs and personal schedule. Lessons are available around-the-clock via any computer or mobile device and can be navigated in any sequence you desire. Feel free to take a multiple-choice quiz before, during or after reviewing each lesson to gauge your comprehension of its contents. A practice exam is available to test your overall knowledge of fixed-income securities.

11 Lessons in Chapter 11: Fixed-Income Securities
Test your knowledge with a 30-question chapter practice test
Fixed-Income Securities: Definition & Types

1. Fixed-Income Securities: Definition & Types

This lesson takes you through the world of fixed income securities. You will learn what they are and how they are classified with the help of examples for each one.

Bonds: Types, Characteristics and Issuing Procedures

2. Bonds: Types, Characteristics and Issuing Procedures

In this lesson, you will learn about some of the more common types of bonds and their characteristics. Bonds include: secured and unsecured bonds, term and serial bonds, registered and bearer bonds, and convertible and callable bonds.

Government Securities: Definition, Types & Examples

3. Government Securities: Definition, Types & Examples

Governments need money to operate and, just like people and businesses, they will borrow money when needed. In this lesson, you'll learn about government securities.

Bond Markets: Analysis & Strategies

4. Bond Markets: Analysis & Strategies

Bonds may not be the most exciting investment opportunity, but they serve a valuable role in providing stability for an investment portfolio. Let's take a look at what investors need to know about bond purchases and strategy.

Bond Valuation: Formula, Steps & Examples

5. Bond Valuation: Formula, Steps & Examples

In this lesson, you'll learn the steps required to determine the value of a bond. You'll also learn how to come up with an appropriate discount rate to use in the bond value calculation.

Term Structure of Interest Rates: Definition & Overview

6. Term Structure of Interest Rates: Definition & Overview

In this lesson, you will learn the definition of the term structure of interest rates and its related concepts. The behavior of this fundamental benchmark of interest rate is followed by all the economic agents in the setting of the macro economy.

Interest Rate Risk: Definition, Formula & Models

7. Interest Rate Risk: Definition, Formula & Models

Interest rate risk is really the risk of two different events (price reduction and reinvestment rate reduction) caused by a change in interest rates. Interest rate risk affects bond investments, but the good news for bond investors is that it can be mitigated or eliminated.

What is Credit Risk? - Definition & Examples

8. What is Credit Risk? - Definition & Examples

When you go and buy a car or a house, companies will assess your credit risk before allowing you to make such a big purchase. Learn why and how they do this in this lesson.

Credit Risk Management Methods

9. Credit Risk Management Methods

In this lesson, we'll define bonds. You'll learn about the characteristics of bonds and their rating system. We'll also explore two risk related concepts: risk-neutral and real-world.

Yield Spread: Definition & Measure Types

10. Yield Spread: Definition & Measure Types

In this lesson, we will discuss how to compare fixed-income investments using yield spreads. This is a useful topic to know to compare the relative attractiveness of bond investments.

How Option Characteristics Affect Securities Prices

11. How Option Characteristics Affect Securities Prices

This lesson explores securities commonly affected by option characteristics, including callable municipal bonds and mortgage-backed securities. You'll learn to identify embedded options and discover how option characteristics impact security prices.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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