Coupon Bonds & Yield to Maturity Explained: Why Wall Street Uses a 'Flawed' Metric скачать в хорошем качестве

Coupon Bonds & Yield to Maturity Explained: Why Wall Street Uses a 'Flawed' Metric

Can the same cash flows be sold two different ways—and what happens if the prices don't match? This video breaks down how coupon bonds are priced, why yield to maturity became the industry standard despite its mathematical imperfections, and how arbitrage keeps bond markets honest. You'll learn the difference between valuing bonds with spot rates versus a single yield, and discover the elegant logic behind the Law of One Price that prevents free money from existing in financial markets. 📚 KEY CONCEPTS COVERED: • Coupon bond structure: periodic interest payments plus principal at maturity • Two valuation methods: spot rate discounting vs. yield to maturity • Why YTM is a "convenient fiction"—one number summarizing complex cash flows • Strip replication: viewing coupon bonds as portfolios of zero-coupon bonds • The Law of One Price and how arbitrage enforces market efficiency • Real arbitrage mechanics: buying strips, short-selling bonds, capturing riskless profit ═══════════════════════════════════ 📖 ORIGINAL SOURCE ═══════════════════════════════════ This video distills concepts from academic finance lectures on bond pricing and fixed income securities. Source:    • Ses 5: Fixed-Income Securities II   Full credit to the original lecturer for the foundational content. This video aims to make these concepts more accessible through condensed presentation. ═══════════════════════════════════ 📺 ABOUT LECTURE DISTILLED ═══════════════════════════════════ Long lectures. Short videos. Core insights. We transform lengthy academic lectures into focused concept videos that respect your time while preserving the depth of understanding. 🔗 GitHub: https://github.com/Augustinus12835/au... #BondPricing #YieldToMaturity #CouponBonds #FixedIncome #Finance #Arbitrage #Investing #FinancialMarkets