CFA Level I Fixed Income - Bond Valuation Using Matrix Pricing

[@sriram181]

The explanation and the synchronised animation along with it was marvelous

[@MisterRubiano]

The graph makes it so easy to inderstand. Many thanks!

[@salmamarine1694]

Thanks a lot its really well explaines

[@PrepNuggets]

You are most welcome

[@jingyuanfan6041]

Clear explanations, thank you! What about the flat price and full price? I can’t find the video for it

[@anshugupta1199]

thank you. keep posting more videos.

[@PrepNuggets]

More to come!

[@tristanyoung4997]

This is so clear. Thank you!

[@shubhamsurana1119]

Thanks for the explanation

[@vuminhduc2534]

thanks a lot!!!

[@abhijeetporwal1049]

thank you man

[@virx7944]

Hi, at @2.32, it's stated that the relationship should be 2/3 of 1.25%, could you explain further? i understand how to derive the value but not the reasoning behind it.

[@jalaluddinisa]

This is because the bond we are trying to find the ytm of is a 4 yr bond, which is 2/3 of the way between the 2yr and 5yr bonds. Thus we add the YTM at starting point of 2yrs (6.55%) to 2/3 of the YTM of 5yr-2yr (1.25) = estimated YTM at year 4. For example, if the bond we were looking for actually had a 3 yr TTM, we would calculate the YTM by adding 6.55% + 1/3(1.25%)

[@Rey_B]

@@jalaluddinisa that is 4-2/5-2 isn't it?