4-1: Debt Concepts & Definitions

Practical explanation of A) debt concepts and definitions (principal & interest, issuance & maturity); B) debt instruments, (discount notes, interest-bearing notes, annuities, bonds, and amortized debt); and C) securitization of debt instruments.

4-3: Principal Debt & Interest-Bearing Notes

Explanation of Discount Paper & Discount Notes, which make a singular payment (the principal) at a specific future date. The market values these and other securities through prices and yields, which are discussed. This video also introduces how to value debt instruments with a financial calculator.

4-4: Annuities

Explanation and Valuation of Annuities, which make a fixed, regular-interval payment through a specific timeline. This differs from amortized debt, which is typical for car loans and mortgages. This video also introduces how multiple periods-per-year influence the valuation process.

4-5: Bonds

A bond is principal debt security where explicit, intermediate interest payments are made in the form of an annuity, known as a coupon. The details of bond terms, yields, & coupons are elaborated in this video.

4-6: Amortized Debt

Debt that charges interest on the remaining principal. This is the most common form of retail/consumer debt and applied to career-starter loans, car loans, and housing mortgage debt.

Debt Markets & Securities

TVM Calculator - This excel model will be used throughout this Chapter. [Note: this only works in Excel, not in Google Sheets]

5-3: Money Market Securities & Valuation

Valuation of principal debt securities with maturities less than one year. These securities (are assumed) to not pay explicit interest; their principal value is their face vale and their future value; and they are sold, bought, and traded at a discounted price from their face/future/principal vale.

5-5: Capital Market Securities & Valuation

Valuation of Bonds that trade on capital markets. In Chapter 4, we valued bonds at issuance. In this segment, we value bonds at any point throughout maturity. The critical attribute of bond trading is separating a bonds' reported price from its accrued interest, and combining them to determine the bond's invoice price.

5-9: Duration & Default

Conceptual and mathematical calculation of duration, modified duration, and volatility. Exploration of write-down and reissuance of bonds.