- CFA Exams
- 2025 Level II
- Topic 6. Fixed Income
- Learning Module 26. The Term Structure and Interest Rate Dynamics
Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Learning Outcome Statements PDF Download
| 1. The Forward Rate Model describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve; describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping; | |
| 2. Yield Curve Movement, Forward Curve and Rolling Down the Yield Curve describe the assumptions concerning the evolution of spot rates in relation to forward rates implicit in active bond portfolio management; describe the strategy of rolling down the yield curve; | |
| 3. The Swap Rate Curve and the Swap Spread explain the swap rate curve and why and how market participants use it in valuation; calculate and interpret the swap spread for a given maturity; describe short-term interest rate spreads used to gauge economy-wide credit risk and liquidity risk; | |
| 4. Traditional Theories of the Term Structure of Interest Rates explain traditional theories of the term structure of interest rates and describe the implications of each theory for forward rates and the shape of the yield curve; | |
| 5. Yield Curve Factor Models explain how a bond's exposure to each of the factors driving the yield curve can be measured and how these exposures can be used to manage yield curve risks; explain the maturity structure of yield volatilities and their effect on price volatility. | |
| 6. Developing Interest Rate Views Using Macroeconomic Variables k. explain how key economic factors are used to establish a view on benchmark rates, spreads, and yield curve changes. |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
My Own Flashcard
No flashcard found. Add a private flashcard for the module.
Add