Fixed-Income Cash Flows and Types
Free CFA Level I lesson in Fixed Income. 11 min read, ~1,645 words.
Bullet pays all principal at maturity. Fully amortizing spreads principal. Partially amortizing leaves a balloon. Sinking fund retires principal on a schedule. Issuer-benefit options: callable, prepayment, caps on floaters. Investor-benefit options: putable, convertible, floors on floaters. Embedded issuer options raise required yield; embedded investor options lower it. Eurobonds are issued...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- cash flows and types
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