How to calculate discount factor from yield curve Videos

• 1. 15. What is a Yield Curve
• 2. Bootstrapping the Treasury spot rate curve
• 3. 9. Yield Curve Arbitrage
• 4. CFA Level I Yield Spreads Video Lecture by Mr. Arif Irfanullah Part 1
• 5. Discount instrument: Calculate the yield
• 6. Fixed-Income Securities - Lecture 05
• 7. FRM: Discount factors do not lie (about compound frequency)
• 8. Investopedia Video: Bond Yields - Current Yield and YTM
• 9. Cost-Benefit Discounting

15. What is a Yield Curve

User Comments

Andrew Alberts commented on 15 Jul 2015

so its good to buy bonds when interest rates are high or low? I know you mentioned it before but I forgot haha +Preston Pysh

Lovro Vrabec commented on 29 Jul 2015

+Andrew Alberts When interest rates are high buy bonds, sell stocks and when interest rates are low sell bonds, buy stocks.

MyDreamside commented on 13 Jul 2015

i am in Greece in the eurozone for now, 1) Does the federal reserve bank policy affect the Euro area too? 2) If i want to buy bonds in euro, should i look the Euro central bank yield curve? i think due to globalization, all treasure yield curves must be similar, am i right?

Secretsofsociety commented on 30 Aug 2015

+MyDreamside If the US decides it wants to pursue contractionary policy it will increase the strength of the dollar compared to other currencies. This will make trade agreements with the US preferable as the US will be paying in USD. This leads to a trade deficit where goods and services comes into the US and financial capital outflows. If this happens Europe will likely also pursue contractionary policy in order to keep market share on their imports.

ExtremeTG commented on 11 Aug 2015

+MyDreamside yea thats a good question. As someone in UK, i am also interested in this. So have you found the answers, if u have, mind sharing it :)

Amanda Flores commented on 07 Mar 2015

Thank you for this easy to follow video. 

Preston Pysh commented on 09 Apr 2015

+Amanda Flores thanks for watching!

Olek Lis commented on 31 Dec 2014

Great video Preston. I decided to check out the current US treasury yield curve and it looks the same as the 2012 yield curve did, however we are no longer in the midst of a recession so I'm confused as to why the US is trying to stimulate the economy when the stock market is currently booming. Can you please explain why the US treasury is acting in this way? Website for reference: //www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-Yield-Data-Visualization.aspx 

Preston Pysh commented on 12 Jan 2015

+Olek Lis I think the FED is concerned about the housing market when interest rates go higher.  The issue is that it's creating a very unique environment where very few deals exist.  Interesting times!  Great question.

Aaron Chow commented on 13 Dec 2014

Thank you Preston for all of your videos. I'm watching every single one of them, and becoming a better investor every single time. Thank you for showing me, really, how unqualified I was to be investing in stocks. Now I'm more honest with my risk levels. Thanks again. Please keep the vids coming!

Preston Pysh commented on 12 Jan 2015

+Aaron Chow thank you so much for the very kind comment!

Bootstrapping the Treasury spot rate curve

User Comments

HithereDiane commented on 04 May 2015

Can someone explain why the CF of $102.50 needs to include the principal? And let's say for a bond term of 2 years would you have to add the principal more than once for the CF?

HithereDiane commented on 05 May 2015

+Tanner Leif Yes, thank you.

Tanner Leif commented on 04 May 2015

+HithereDiane The CF of $102.50 needs to include the principal because at maturity the bond is paid at par value ($100). So you are receiving the the CF every six months. So the cash flow is $2.50. The way bonds work is that you are paid the par value of the bond at the maturity so for a bond term of 2 years, you would have the cash flows over the spot rates for the first 3 periods or 1.5 years and then in the 4th period or year 2 when your bond matures you would receive the par value of 100+CF/(1+Z)^4. Does that make sense?

9. Yield Curve Arbitrage

CFA Level I Yield Spreads Video Lecture by Mr. Arif Irfanullah Part 1

User Comments

NUR AINI ALI KASIM commented on 13 Nov 2012

I salute you for your effort and patience in helping us, the CFA candidates from all around the world.You make it easier for me to digest the syllabus during my last minute study, which can somewhat be overwhelming and confusing. Keep up the good work. Thank You very much Sir.

Shrey Tyagi commented on 22 Aug 2013

Sir!!! Your videos are a lifeline to me in my CFA prep. Thanks a lot--New Delhi, India

cynthia oh commented on 21 Oct 2013

shouldnt the curve be decreasing when the yield curve is flat for liquidity premium?

Sophievan88 commented on 29 Mar 2012

you are awesome! from Vietnam with lots of respect :)

Nasimov Bobur commented on 22 Aug 2015

fantastic videos! Uzbekistan )

kamer mohamed commented on 18 Feb 2013

a big thanks from Egypt

Nelsy Carolina Rodriguez commented on 05 Oct 2013

God bless you sir.

Discount instrument: Calculate the yield

Fixed-Income Securities - Lecture 05

User Comments

Neo commented on 28 Oct 2012

Dr. Petrov, Question on 7:00. If we have a annual bond maturing in 3yrs. Then the number of payments are 3 (including principal in the last coupon payment). Hence the time (t) we raise the denominator is t=1,2,3. However if we have a semi-ann bond maturing in 3 yrs, we raise the denominator of the cash flows by t=1,2,3,4,5,6 (6 total payments). But shouldn't the time (t) equal, t=.5,1,1.5,2,2.5,3 ? Is time (t) denoting a period in years or the number of cash flows? Confused on this point.

Krassimir Petrov commented on 29 Oct 2012

You are asking a very simple question from ELEMENTARY finance and you should get back to your introductory textbook for that. I don't do free personal consulting on YouTube.

Kamal Bashasha commented on 25 Jun 2013

thank you very much it is very benefit to me ....i am master student in UIA Malaysia

Martin Chowdhury commented on 30 Jan 2013

..DR PETROV , I really Enjoyed your style of Training...GREAT...

Saurabh Paul commented on 16 May 2013

Awesome video ..I like the way you teach

Krassimir Petrov commented on 27 Mar 2013

Thank You Bodhos. Where are you from?

Boghos mardirossian commented on 26 Mar 2013

You are excellant

FRM: Discount factors do not lie (about compound frequency)

Investopedia Video: Bond Yields - Current Yield and YTM

User Comments

‫نور‬‎ commented on 12 Dec 2015

i am a bussines student and this vedio helped me to anderstand. thanx alot :-*

kapquarfa commented on 19 Mar 2015

perfectly explained in a short video- thanks.

MrJpahl12 commented on 05 Mar 2015

Great video *Subscribed*

Cost-Benefit Discounting

User Comments

Godfrey Kadzere commented on 18 Jun 2015

Thanks for video. Helpful BUT you are speaking a bit too fast. Sometimes I had to replay scenes several times in order to grasp certain concepts in your video

ninacarraway17 commented on 06 Jan 2015

great job! really helped me cos I'm a visual learner. thanks!

Isabel love yoga commented on 21 Mar 2015

GOOD! I like it. it's funny and I can learn it in quick way.

Aparna Mallya commented on 19 Oct 2015

You are awesome!

pornolover666666 commented on 04 Aug 2015

Canada sucks