Thank you so much for this video. I am struggling with this topic. Now my problem is slove.
@Usman-ml4ig2 жыл бұрын
Fabian, you are the best teacher for Fixed Income I have come across.
@saulserano42924 ай бұрын
helped me on something I have been stuck on for days
@MrMan2413 жыл бұрын
Simply A M A Z I N G! Cant describe how much time you save me with this explanation!
@Chicken_Smuggler Жыл бұрын
Thank you Fibian, I am actually going to pass my test next week thanks to you. I was really lost until I found your videos!
@star5guy Жыл бұрын
very well done Fabian, absolute stunning work here buddy. cheers !
@Maiamam4412 жыл бұрын
Hi Fibian, I just want to thank you for the great videos. Really admire how you simplifying such concepts that sound so difficult in classrooms.
@krupamehta87052 жыл бұрын
Such a simple and wonderful explanation!! Thanks a lot :)
@farjanaakhter22174 жыл бұрын
Thanks for the lesson. You are an amazing teacher I can say.
@FabianMoa4 жыл бұрын
I appreciate that!
@benmughal11 ай бұрын
Hi Fabian, how would this change for a zero coupon bond?
@FelixFrost Жыл бұрын
Thank you! I was under the impression that the volatile forward rate will be some sort of expansion of the forward rates we calculated earlier, but I see that without calibration this is imposible
@FabianMoa Жыл бұрын
Yes, you're right. It is dependent on the volatility assumption and the price of the benchmark bond
@franciscojurado86273 жыл бұрын
Why did you calculate the spot/forward rates for all subsequent periods than the first one? If at the end you just ended up using the first par rate (=S1) to initially generate the model. Then for calibration, you just relied on the assumption that we needed to achieve the 100 (par value).
@arnoldachiri48104 жыл бұрын
Thanks for all your amazingly made short videos Fabian!
@FabianMoa4 жыл бұрын
You're welcome, Arnold. Thanks for watching.
@ijeomadoghor2203 жыл бұрын
thanks..great teaching.well explained.
@omairali11645 ай бұрын
Thanks alot, this was very helpful Fabian. I think there is a small error in the text in red highlights at 12:00, Although in the formula you've calculated correctly on the spot rate, it looks like you've mentioned par rate in the red highlighted text box (0.0450)
@MrGonerman3 жыл бұрын
wtf this video is sooo good !!! incredible teacher
@claudiasavoy1644 Жыл бұрын
Hi Fabian, thanks a lot. Great explanation!
@MohammadKarimi-mh6yy8 ай бұрын
Thanks a lot Fabian. It was great.
@FabianMoa8 ай бұрын
No problem!
@lrsun18742 жыл бұрын
so well explained!!! thank you so much
@FabianMoa2 жыл бұрын
Thank you! 😄
@Domo_Sensei Жыл бұрын
@fabianmoa, around the 19:00 mark you build a 2 year par curve, but use rates from T0 and T1? Why not T2 for the 2nd year ... I'm confused as to why there are not 3 ends to the binomial tree for the 2 year bond?
@xgum2 жыл бұрын
great. easy to follow.
@kalaniking45176 ай бұрын
How do you come up with, calculate, or find the interest rate volatility if it's not given?
@apsrinivasan16062 жыл бұрын
Great video, thank you
@triathlonrookie3592 жыл бұрын
Could you please do the same using the Ho-Lee Model?
@maolin78663 жыл бұрын
Thank you!
@SuperSagarika2 жыл бұрын
THANKS A LOT
@FabianMoa2 жыл бұрын
You're welcome!
@ericgregorious70472 жыл бұрын
Hi Fab are u required to construct the tree for the exam? Like how on earth are u supposed to do that without excel?
@FabianMoa2 жыл бұрын
Nope. It will be given. But you may be given the interest rate volatility and an interest rate in one of the nodes and asked to find the interest rate in the upper/lower node.
@ericgregorious70472 жыл бұрын
@@FabianMoa ok thank u Fab.
@kakacricket3 жыл бұрын
What a legend
@georgegiaglis55593 жыл бұрын
The middle rate for period 2 (6,9007%) shouldn't be equal to the forward rate ( F(2,1)=7,1297 ) ?
@FabianMoa3 жыл бұрын
Hi George, it will not be equal
@ArunKumar-yb2jn4 жыл бұрын
Why is the distance between up node and down node set at 2 standard deviations?
@FabianMoa4 жыл бұрын
Hi Arun I will answer that in another video 👌
@ArunKumar-yb2jn4 жыл бұрын
@@FabianMoa sure, thank you.
@truyencaothe1945 Жыл бұрын
I wonder how do you do this in exam?
@FabianMoa Жыл бұрын
This is for educational purposes. It is unlikely that they will test the generation of the tree in the exam.