Decks in this Class (11):

A Evaluate Using Relative Value Analysis
a evaluate, using relative value analysis, whether a security is undervalued, fairly valued, or overvalued;
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B Evaluate The Importance Of Benchmark I
b evaluate the importance of benchmark interest rates in interpreting spread measures;
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C Describe The Backward Induction Valuat
c describe the backward induction valuation methodology within the binomial interest rate tree framework;
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D Calculate The Value Of A Callable Bond
d calculate the value of a callable bond from an interest rate tree;
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E Explain The Relations Among The Values
e explain the relations among the values of a callable (putable) bond, the corresponding optionfree bond, and the embedded option;
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F Explain The Effect Of Volatility On Th
f explain the effect of volatility on the arbitragefree value of an option;
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G Interpret An Option Adjusted Spread Wi
g interpret an optionadjusted spread with respect to a nominal spread and to benchmark interest rates;
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H Explain How Effective Duration And Eff
h explain how effective duration and effective convexity are calculated using the binomial model;
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I Calculate The Value Of A Putable Bond
i calculate the value of a putable bond, using an interest rate tree;
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J Describe And Evaluate A Convertible Bo
j describe and evaluate a convertible bond and its various component values;
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K Compare The Risk Return Characteristic
k compare the riskreturn characteristics of a convertible bond with the riskreturn characteristics of ownership of the underlying common stock.
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