Reading 64 – Introduction to the Valuation of Debt Securities = 57%
Although there weren’t many questions in this reading it was a good wake up call that you can’t think just being able to plug a FV, PMT, I/Y, N and CPT PV is good enough to get through this reading.
E.g. Future value = Par + Coupons + Interest on Coupons.
E.g. Use of individual spot rates to calculate the price of a bond manually.
Reading 65 – Yield Measures, Spot Rates, and Forward Rates = 71%
Again, despite previous knowledge in Fixed Income this required constant review in my Schweser materials, e.g. calculating current yield, cash flow yield, yield to call, yield to put, yield to worse, etc. It was also a good reminder not to get too excited when calculating YTM from a semi-annual bond where a BEY is required, and make no mistake that the answer before x2 will be their as a potential answer.
To make up for a disappointing weekend I have planned to use the forthcoming
Easter break to get some serious study under my belt + I’ve added on Tuesday and Wednesday next week from my annual leave to give myself a good 6 days worth of study.
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