Free module · Research & investment
Rates, Credit & Macro
Connect discount curves, balance sheets, and cross-asset prices.
duration · carry · credit · currencies
The building blocks
A bond exchanges money today for promised future cash flows. Discount each flow before measuring how its value responds to rates.
- Draw the cash-flow timeline
- Calculate present value and yield
- Approximate rate sensitivity and convexity
Lessons in this module
- Price a bond from its cash flows
- Duration, convexity, and curve hedges
- Credit spreads compensate more than expected default
- Carry, forward prices, and macro surprises
Practice and apply
- Size a rate hedge — A $2 million bond position has modified duration 6 and convexity 45. A hedge contract has DV01 of $80. Use a 50 bp parallel rise for the stress.
Work through the practice exercises · Quant development tools