Zebra Smash - Real Financial Planners | Real Conversations

Our first ever episode, in which we discuss bonds at length. Topics include bond terminology, how to value them, and key risks. Eligible for 1 hour of CFP CE credit. To access the CFP CE credit quiz, please navigate to www.cheetahsmash.com.  (You'll have to create an account, but you'll be able to use that same account for all future Zebra Smash CE quizzes.) Show Notes What’s a bond: definitions, components, etc. Bond price calculation (semiannual coupon bonds):   Thanks Wikipedia! …or just use your HP-10BII+ calculator! Zero coupon bonds: what are they, and why would you buy them? The myth of reinvestment risk, as commonly propagated (Required reading: http://www.economics-finance.org/jefe/econ/ForbesHatemPaulpaper.pdf) Prepayment risk, callable bonds and the concept of “yield to worst” Collateralized debt obligations to mitigate pre-payment risk Credit risk and credit spreads Bond enhancements to ease credit risk Interest rate risk Duration – we thought about putting this calculation i