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# Bond Valuation and Analysis in Python

Learn how bonds work and how to price them and assess some of their risks using the numpy and numpy-financial packages.

4 Hours14 Videos49 Exercises

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## Course Description

The world’s bond market has a value of around 120 trillion dollars; it plays a key role in helping both governments and businesses raise capital and is an essential part of most investment portfolios. In this course, you’ll gain the essential skills needed to work in the financial, insurance, and accounting industries, including understanding and analyzing markets. Through hands-on activities, you’ll discover how bonds work, how to price them, and how to assess some of their risks using numpy and numpy-financial packages.

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1. 1

### Time Value of Money

Free

In this chapter, you’ll cover simple and compound interest, compounding frequencies, future value as well as commonly used financial functions in the NumPy-financial package.

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Simple interest & compound interest
50 xp
Calculating simple interest
100 xp
Calculating compound interest
100 xp
Future value & compounding frequencies
50 xp
Calculating future value
100 xp
Calculating compounding frequencies
100 xp
More financial functions
50 xp
Calculating the number of periods
100 xp
Calculating the payment amount
100 xp
Calculating the required interest rate
100 xp
Solving real-world problems
100 xp
2. 2

### Bond Prices & Yields

Let’s get fiscal. You’ll discover how to find the price of both zero-coupon and coupon-paying bonds, as well as examining the relationship between bond prices and bond yields.

3. 3

### Duration

Now it’s time for you to explore interest rate risk via the concept of duration, the factors affecting duration, and how to use duration to predict the price changes of a bond or hedge bond portfolios.

4. 4

### Convexity

In the final chapter, you’ll be introduced to convexity. You’ll see how it helps address the weaknesses inherent in duration, examine the factors affecting convexity, and use both duration and convexity together to better predict bond prices.

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Collaborators

Prerequisites

Introduction to Functions in Python
Joshua Mayhew

Josh works as an options trader for an investment bank based in London.
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