Instructional Video: Properties of Interest Rates

Topic Progress:

Hull, Chapter 4 is a 57 minute instructional video analyzing the following concepts:

* Describe Treasury Rates, LIBOR, Repo Rates, and what is meant by the risk-free rate.
* Calculate the value of an investment using different compounding frequencies.
* Convert interest rates based on different compounding frequencies
* Calculate the theoretical price of a bond using spot rates.
* Derive forward interest rates from a set of spot rates.
* Derive the value of the cash flows from a forward rate agreement (FRA).
* Calculate the duration, modified duration and dollar duration of a bond.
* Evaluate the limitations of duration and explain how convexity addresses some of them.
* Calculate the change in a bond’s price given duration, convexity, and a change in interest rates.
* Compare and contrast the major theories of the term structure of interest rates.

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