Practice: Bond Math
Twenty-four scored problems on bond yields, duration and convexity, the yield curve, interest rate scenarios, Treasury bills and auctions, zero-coupon bonds, real yields, and what a bond costs to buy.
What you'll do
This set works through the Bond Math module. You'll tell a bond's yields apart, calculate a duration from scratch and use it to estimate price changes, work out a forward rate, find a fund's break-even rate rise, price a Treasury bill and convert its discount rate, fill an auction, price a zero, split a yield into its real and inflation parts, and add accrued interest to a quote. Each answer comes with the working, and your score appears as you go. Nothing is recorded outside this browser.
This draws on
Work through the problems in order and check each answer once you've committed to it. The score counts your first try. A calculator or spreadsheet is expected. All the bonds, funds, and numbers are hypothetical.
The problems in this practice set are for members
Inside, each with a worked answer: Yields (4 problems); Duration and convexity (7 problems); The yield curve (3 problems); Scenarios (3 problems); Bills and auctions (4 problems); Zeros and real yields (2 problems); What you pay (1 problem).
Membership opens every lesson in the curriculum, the capstone projects, the interactive tools, and the members-only channels in the Hyperion Entities Discord. The first lesson of every module stays free.