Browse CFA Level 2

Chapter 4: The Term Structure of Interest Rates

In this section

  • Spot Rates, Par Rates, Forward Rates
    Explore the foundational concepts of spot, par, and forward rates, and learn how to apply them in real-world fixed-income valuation scenarios.
  • Bootstrapping the Zero-Coupon Curve
    Learn how to derive zero-coupon spot rates step by step from coupon-bearing bonds, ensuring a no-arbitrage framework alongside practical exam tips and common pitfalls.
  • Traditional Theories of the Yield Curve
    Explore the classic explanations for yield curve shapes, including pure expectations, liquidity preference, market segmentation, and preferred habitat theories, and see how each theory influences interpretation and forecasting in real-world bond markets.
  • Item Set: Deriving Forward Rates in a Vignette
    Learn how to derive forward rates in a typical CFA exam-styled item set, linking spot rates to future interest rates with a thorough approach to exam tips and real-world implications.
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Chapter 3: Yield Measures and Bond Pricing Basics
Chapter 5: Interest Rate Volatility and Benchmarks