CFA® Level II Fixed Income - Understanding "Rolling Down the Yield Curve" Strategy

[@OGkgsg]

Finally someone tried to explain it. The reading on this topic is extremely confusing

[@victorsardon3521]

At 10:30 shouldn't the cash flows be discounted using corresponding spot rates? To be able to use the YTM the yield curve at the time of valuation must be flat, which is in agreement with an unchanging yield. However the chart for the manager's expectation shows an unchanging term structure that slopes upwards.

[@sylphsh]

I think when using simple discounting to calculate bond price, it must be a zero coupon bond, but the example bond is a 5% coupon bond, thus the formula and calculator is often used.

[@preetjain720]

best video on the topic, thank you!

[@PrepNuggets]

Glad it was helpful!

[@sarafeliciano3088]

This is great, thank you

[@Wavyyyaf]

Thanks!

[@PrepNuggets]

No problem!