Crash Course in Bonds
A stepbystep course designed for those pursuing a career in fixed income research, investments, sales and trading or investment banking (debt capital markets).
Why You Should Take This Course
We’ll be blunt: bond analysis is usually taught horribly. Our course completely demystifies fixed income analysis to give people from the outside a clear window to the inside.
If you’ve ever tried to learn about bonds – either through a textbook, a university class, or CFA training materials, you’ve most likely discovered that it quickly gets painful. We’ll be blunt: bond analysis is usually taught horribly. Beyond superbasic concepts of bond pricing and interest rate valuation, concepts like convexity, modified duration and forward curves are introduced with no connection to how they relate to realworld investment strategies.
We made this course with one overall objective in mind: to make something truly different than what’s out there now. Something that completely demystifies fixed income analysis and gives people a clear window to the inside.
We feel certain we’ve accomplished this. We take you stepbystep through the core concepts you need, and completely cut out concepts you’ll never use. The result is an intuitive look at the use of bonds in fixed income research, sales and trading and investment banking.
What You Will Learn
 Fixed income market overview
 Bond math basics
 Yield calculations and conventions
 Money Market math
 Interest rate risk
 Real world bond pricing nuances
 Callable bonds
 The yield curve
 Nominal spread & Zspread
 OAS
 Spot rates
 Realized compound yield
 Holding period yield
 Forward rates
 Credit analysis
 Debt Capital Markets
PLUS: We’ll show you how market practitioners use Bloomberg on the job.
Wall Street Prep’s Crash Course in Bonds is used at top financial institutions and business schools.
Course Samples
DV01
Interpreting the Bloomberg YAS screen
Yield curve shape at various points in the business cycle
Exam and Certification
There is a 3hour examination at the end of the course. You are eligible to take the exam for 24 months from the date you registered for the course. Those who complete the exam and score above 70% will receive a Certification in Bond Analysis. The exam is challenging and covers the most difficult concepts covered in the program.
Course Highlights

Used on the Street
This is the same comprehensive course our corporate clients use to prepare their analysts and associates.

1.5x, 2x video speed
Save loads of time by bumping up playback speed to breeze through lessons at your own pace.

Taught by bankers
Our instructors are former Ibankers who give lessons realworld context by connecting it to their experience on the desk.

Instructor Support
Have a question on course content? Communicate directly with instructors by asking questions throughout the course.
Full Course Agenda
 Chapter 1: Fixed income market overview

 What is fixed income?
 Size of the bond market
 Bond market geographic breakdown
 Chaper 2: Bond Basics

 Basic bond terms
 Basic bond math
 Using Excel’s RATE() function
 Reinvestment assumption of YTM
 YTM vs. current vs. nominal yield
 Annuities
 Bond price as present value of a bond’s cash flows
 Simple bond price exercise
 More bond terms
 Bond issuance costs
 The price/yield relationship
 Primary vs. secondary bond market
 The bid/ask spread
 Chapter 3: Yield calculations and conventions

 Coupon frequency and bond equivalent yield (BEY)
 BEY vs Effective annual yield (EAY)
 Converting from BEY to EAY
 Compounding conventions of 0coupon bonds
 Chapter 4: The money market math

 Money market yield
 Money market math exercises
 Compounding
 Discount basis
 Converting interest rates
 Money market instruments
 Chapter 5: Real world bond pricing nuances

 Settlement date
 Bond pricing between coupons
 Fractional periods
 Day count convention
 Dirty price
 Dirty price exercise
 Clean vs dirty price
 Useful Excel functions
 Bond pricing exercise, part 1
 Bond pricing exercise, part 2
 Bond pricing exercise, part 3
 Interpreting the Bloomberg bond screen
 Chapter 6: Realized compound yield and holding period yield

 Realized compound yield and holding period yield
 RCY / HPY exercise, part 1
 RCY / HPY exercise, part 2
 RCY / HPY exercise, part 3
 Chapter 7: Interest rate risk

 Intro to interest rate risk
 DV01
 Hedging interest rate risk
 Estimating the price impact of rate changes
 Modified duration & dollar duration
 Modified duration exercise
 Useful Excel functions for interest rate risk
 Modified duration exercise, part 2
 Modified duration exercise, part 3
 Convexity
 Convexity exercise
 How convexity is applied in practice
 Duration/convexity between coupons
 Duration/convexity between coupons exercise
 Interpreting the Bloomberg YAS screen
 Chapter 8: Callable bonds

 Make whole call
 Make whole call, Apple example
 Callable bonds
 Sinking fund redemption
 Yield to call and yield to worst
 Chapter 9: The yield curve

 Yield curve intro
 Term structure theory
 Monetary policy intro
 Federal funds and the discount rate
 Open market operations
 Other central bank tools
 Summary of forces affecting the yield curve
 Yield curve shape at various points in the business cycle
 Chapter 10: Spot rates

 Spot rates intro
 Spot rates role in bond valuation
 Full vs YTM bond valuation approaches
 Bootstrapping the spot curve, part 1
 Bootstrapping the spot curve, part
 Chapter 11: Nominal spread, Zspread and OAS

 Yield spreads and the zspread
 Option adjusted spread
 Chapter 12: Forward rates

 Forward rates
 Forward rate exercise, part 1
 Forward rate exercise, part 2
 Forward rate exercise, part 3
 Trading strategy using forward rates
 Chapter 13: Credit analysis

 Credit risk
 Credit analysis
 Navigating Clear Channel’s bond agreement
 Chapter 14: Debt capital markets and the debt origination process

 Debt origination primer
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