Determinants of interest rates (for the CFA Level 1 exam)

Determinants of interest rates (for the @CFA Level 1 exam) explores the components of interest rates:
- the real risk-free interest rate
- inflation premium
- default-risk premium
- liquidity premium
- maturity premium
and goes through an exam-style question on approximating the rate of interest.
This video explores concepts covered in Lesson 2, Learning Module 1 of the Quantitative Methods section of the 2024 CFA Level 1 Curriculum

[@tonile1970]

OMG thank you so much! Your lecture is amazing.

[@sahiljn9761]

The best teacher i ever saw in my existence ... the way you teach is incredible sir ... thank you for the valuable content . ( sir i would like to ask can i refer to your playlist for the 2025 feb attempt .. is the curriculum uploaded fullly for the following level 1 exam )

[@letmeexplaincfa]

Thank you very much. I am constantly uploading and will finish in November - the playlists are relevant for the 2025 sitting as well.

[@m.m.5237]

Thanks a lot, it helps me so much😄

[@Nrgdumik]

Dear Wojciech, I passed the L1 exam last November and so grateful for efforts you put in each video. Without your teachings and brilliant explanation, my journey would have been much much harder. Are you planning to release content covering the L2 exam?

[@letmeexplaincfa]

Hi, thank you so much for writing. This is so nice to hear ;) Yes, I plan to broaden the content to L2 starting in March

[@adhamismail3744]

i will also be waiting @@letmeexplaincfa

[@Analyst_YT]

@@letmeexplaincfa would love to have your sweet way of teaching in all levels of CFA. Have a happy, healthy and prosperous life, dear!

[@AI-sz2qm]

legend - is there somewhere we can purchase the entirety of videos covering all of quants and maybe fixed income?

[@letmeexplaincfa]

Thank you very much🙏 this is the content I have. You can access the full range of videos by Joining the channel. I am constantly uploading more videos, and large portion of them will be available to Members/Supporters only. The plan is to cover 2/3 of the Level Curriculum by the August sitting and be fully ready for the November session👍

[@peterchama8241]

@@letmeexplaincfahow do I become a member

[@thefinancevictory]

Thank you sir

[@letmeexplaincfa]

🙏

[@shaneabela3773]

Amazing

[@mohammedaldosari199]

Thank you so much

[@letmeexplaincfa]

You are very welcome. Thank you for supporting the channel!

[@GhadaAhmed-xl2rj]

Thanks a lot

[@letmeexplaincfa]

You’re very welcome👍

[@typicalgamer5560]

Do you have a website?

[@letmeexplaincfa]

I have a website but it's aimed at my corporate training clients. I do not have a website for CFA prep/courses. All of the content I create for CFA is uploaded to this channel (some of it available to supporters only).

[@fangqiangshan]

@@letmeexplaincfaI am really wondering which video tool are you using for making the video. It looks really cool.

[@peterchama8241]

How do I become a member. I need all videos

[@letmeexplaincfa]

The join button should be available on the channel homepage. If you can’t see it on your phone please try on a computer. Unless you are based in a country not supported by Google’s payment options, this should work.

[@peterchama8241]

I am in Zambia and it’s not listed

[@letmeexplaincfa]

That’s a real shame Peter😔 i don’t have the videos hosted anywhere else.

[@Verlain28]

@@letmeexplaincfa Hi Prof, is there a way to host them for those countries which are not eligible. Possibly I could pay the membership through PayPal and provided with an unlisted link of the videos? Or a Google Drive? I am desperate lol!!! Your videos have been such a help as my exam is in November.

[@letmeexplaincfa]

@@Verlain28 Hi, I will investigate this option in the future but for now it simply isn't possible without going outside of the KZbin ecosystem :(

[@NinaNajjar]

heart

[@alexu5401]

Thank you for your content! Really helpful. You gained a new subscriber

[@letmeexplaincfa]

Thank you!

[@fahadalhazmi3300]

How can I become a member

[@letmeexplaincfa]

Hi, thanks for the question. You should see a Join button on the channel page. If you don't, please try on a personal computer/laptop (the button is not always visible on a phone). If you it you can't join still it may be because you are in a location where this feature is not enable by Google. Here's a list of eligible countries: support.google.com/youtube/answer/6307365?hl=en#zippy=%2Cpremium-memberships-available-locations

[@mohamedkarchi]

Can you tell me what's the difference between these videos that you're uploading now (in yellow) and the old ones .. thank you so much for your efforts sir

[@letmeexplaincfa]

Hi, thanks for your message :) The yellow videos follow the 2024 Curriculum with the aim of covering it all in time for the November session. A significant portion of them is available to channel members. The old ones were recorded earlier but they still remain largely valid.

[@sultanharbi6848]

Thanks a lot. Very helpful

[@letmeexplaincfa]

You're welcome!

[@Thatscrazyyourecrazy]

just discovered you and wow, thank you

[@lenlen4010]

I love you!❤thank you so much !

[@canhao2592]

Thanks a lot, it helps me so much

[@Nautimax]

Super Clear! Thanks a lot.

[@brunosoria7144]

Very helpful class!

[@abderrahmane800]

Thank you so much.

[@elilee1063]

Hi Professor, great video! I had a quick question about calculating the upper bound for the 4-year, low default risk, low liquidity investment. When we transitioned from the 5-year, high liquidity example (at 6.0%), I was wondering if we should be subtracting the 0.5% liquidity premium instead of adding it? It seems like moving to a low liquidity investment would mean a lower rate, potentially 4.8%. Could you clarify this part? Thanks!

[@letmeexplaincfa]

Hi, investors in a low liquidity instrument face higher risk (low liquidity is unfavourable for them) and thus require additional compensation for this. Hence, we add a premium for low liquidity.

[@elilee1063]

@@letmeexplaincfa Thank you sir!

[@jinelleforde5195]

Help, how does someone become a member to view the restricted videos?

[@letmeexplaincfa]

Please look for the Join button when viewing the channel from a computer (does not show up on a phone). Also, please check that your country is on this list of countries where memberships are enabled by KZbin: support.google.com/youtube/answer/6307365?hl=en

[@liftingmaniac516]

sir im joining from a country that dont have the access to purchase membership, do you have alternative for that?

[@letmeexplaincfa]

Unfortunately not at the moment😔

[@liftingmaniac516]

​@@letmeexplaincfaSir it ll be great if you can do any arrangements to make it available to us too and thank you for your reply.

[@KalaKala-os9ln]

merci beaucoup!!!

[@george6863]

Before I join, does this playlist (Quant) include all areas as per CFA curriculum or uploads are in progress?

[@letmeexplaincfa]

Uploads are in progress. Please visit www.letmeexplain.eu for details and schedule.

[@george6863]

@@letmeexplaincfa Awesome!

[@murktalreja5521]

Amazing lectures. Can you please provide lectures of all topics FSA too. I figuered there were only 2 videos for it yet.

[@letmeexplaincfa]

Yes, just two in the FSA 2024 playlist but there is quite a lot of content covered in the general FSA playlist and the one specifically dedicated to deferred tax. I will be recording more FSA content in late May June. The nex 4 weeks will mainly be focused on the more difficult topics within Quants (hypothesis testing, regression) and Derivatives (options pricing and valuation).

[@murktalreja5521]

@@letmeexplaincfa Great. Thanks for the response. I have mailed you regarding this CFA level 1 content. It would be a great help if you could provide me a response there as well.

[@ishmamfaiyaj6661]

Valuable video!

[@letmeexplaincfa]

Thanks a lot!

[@Echonix-il3gb]

For the example problem, I initially thought to try finding a definite value rather than a range by taking the difference of maturity between investment 2 and 4 then dividing it by 2 to get 1.5. Would that method work?

[@letmeexplaincfa]

Well, this approach is what we do in a section called Matrix Pricing😉 so yes, it works. But in this section, they will phrase the answers as a range👍

[@zakariamalik253]

Hello sir...wanted to check If I take membership..can I get the total quant videos

[@letmeexplaincfa]

Hello, thanks for your message. The section is not complete yet. I plan to add the sampling, hypothesis testing and regression sections in the next 2 weeks.

[@zakariamalik253]

Sir , quants topics mentioned above covered or not

[@letmeexplaincfa]

@@zakariamalik253 Not yet, unfortunately. I am uploading the sampling topics today

[@zakariamalik253]

Hello Sir, Is quants section completed for paid members

[@zakariamalik253]

Hi Sir , please reply..how much quants is covered. Actually i am a working professional and need to make my time table accordingly

[@MarkoM.Gajić]

Great content ! :)

[@letmeexplaincfa]

Thanks for the support🙏

[@peterchama8241]

@@letmeexplaincfaplease I wannabe a member