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# valuation

1. ### Merton model valuation

Hi, I have a practice question (non-BT) related to the use of Merton's debt valuation model. An investor has a large position of bonds issued by XYZ Limited. He has hedged these bonds with equity using Merton’s debt valuation model. Suppose the value takes an unprecedented tumble, but the...
2. ### Corporate Finance Institute | Online Financial Analyst Training

Corporate Finance Institute’s (CFI’s) Financial Modeling & Valuation Analyst (FMVA)® Certification Program was created by experienced instructors for ambitious financial analysts, who want to close the skill gap between formal education and becoming a world-class financial analyst. The...
3. ### YouTube T3-33: Fixed for fixed currency swap: mechanics and valuation

David has three panels here. The first one is to illustrate the mechanics of a fixed for fixed currency swap. After illustrating the mechanics, he will show you how to price or value the currency swap as if it were two bonds. The third way is to illustrate how John Hull shows it in his latest...
4. ### YouTube T3-32: Valuation of plain-vanilla interest rate swap

David breaks down the valuation of an interest rate swap into three steps: 1. The assumptions, which includes understanding the TIMELINE; e.g., we are valuing the stop at some point after origination and it has some remaining life (in this case 15 months); 2. Extracting the implied semi-annual...
5. ### What is the Heath Jarrow Morton (HJM) model in interest rates?

Hello All, I am interested in knowing what is HJM model ? How are they computed ? What are they used for and how are volatility surface derived ? How are they useed for valuations? Want to know mainly in brief and simple/layman language. Thanks
6. ### P2.T5.706. Risk-free rate in derivatives valuation and volatility smiles (Hull Chapters 9 and 10)

Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
7. ### Swaptions

Hi, Is there a video on Swaptions? I want to understand the product, type of swaptions and swaption pricing? Please let me know if there is a video or material for this? Thanks, Kanwar
8. ### How can I prove that two samples belong to different populations (and whether they actually do)?

Hi, David! I'm trying to put the knowledge into practice and I think I need your help. I'm currently evaluating a company and I'm trying to find out whether there is a connection between the valuation multiple and the number of cows (denominator). I've got a sample of similar new factories...
9. ### Carry-roll-down, realized forwards and unchanged term structure -Not able to understand the timeline

Hi David Can you please explain the realized forward concept by a timeline diagram. I am unable to understand the solution given in Tuckman Practise Question 317.1 and 317.2. I am unable to deduce the timeline correctly. I have already looked at the posts related to this topic in the forum and...
10. ### P1.T1.415. Miscellaneous Foundation

Concept: These on-line quiz questions are not specifically linked to AIMs, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical AIM-by-AIM question such that the intended difficulty level is nearer to an actual...