Intermediate
Understanding Bond Pricing: Yield to Maturity, Duration, and Convexity
A rigorous, India-first course on how bonds are actually priced and how their risk is measured. Built for experienced retail investors, active traders, and HNIs who already know what a bond is and now want to price one, compute its yield to maturity, and size its interest rate risk using Macaulay duration, modified duration, PV01, and convexity. Uses G-Secs, SDLs, and corporate bonds traded on NSE, BSE, and RBI Retail Direct, debt fund factsheets, and real RBI rate cycles throughout, with every formula worked in INR.
Bond PricingClean and Dirty PriceYield to MaturityYield to Call and Yield to WorstMacaulay DurationModified DurationPV01ConvexityInterest Rate Risk
MODULES
5
DURATION
~3.5 hrs
TRACK
Stock Market Basics
What You'll Master
Price any fixed-coupon bond by discounting its cash flows, and separate clean price from accrued interest
Compute yield to maturity by hand and in Excel, and understand the reinvestment assumption behind it
Evaluate callable bonds using yield to call and yield to worst
Calculate Macaulay duration, modified duration, and PV01, and use them to estimate rupee price changes
Measure convexity and apply the convexity adjustment to sharpen duration estimates
Read the modified duration on a debt fund factsheet and match bond risk to your own investment horizon
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
Chapter 1: Pricing a Bond from Its Cash Flows
4 Lessons▶
Anatomy of a Bond Cash Flow: Face Value, Coupon, Tenor, and Settlement9 min read
▶
Pricing a Bond as a Stream of Discounted Cash Flows11 min read
▶
Clean Price, Dirty Price, and Accrued Interest on NSE and RBI Retail Direct10 min read
▶
Premium, Par, and Discount: What the Price Tells You About the Coupon9 min read
Chapter 2: Yield Measures and What They Really Mean
5 Lessons▶
Current Yield vs Yield to Maturity: Why the Coupon Rate Is Not Your Return9 min read
▶
Solving for YTM: Trial and Error, Approximation, and Excel's YIELD Function11 min read
▶
The Reinvestment Assumption Hidden Inside Every YTM10 min read
▶
Yield to Call and Yield to Worst: Pricing Bonds the Issuer Can Redeem Early10 min read
▶
Semi-Annual Compounding and Comparing G-Sec Yields with FD Rates10 min read
Chapter 3: Duration: Measuring Interest Rate Risk
5 Lessons▶
Why Some Bonds Move More Than Others: Coupon, Maturity, and Yield Level9 min read
▶
Macaulay Duration: The Weighted-Average Time to Get Your Money Back11 min read
▶
Modified Duration: Estimating Price Change for a Given Rate Move10 min read
▶
PV01 and Rupee Duration: Measuring Risk in Rupees per Basis Point10 min read
▶
Portfolio Duration and Reading Modified Duration on a Debt Fund Factsheet10 min read