Debt Securities

Watch the linked video for an introduction to debt securities.

Inter-connected concepts:

Introduction

1. Debt
   1. Bonds
   2. Fixed-income securities
2. Equity
   1. Stocks

Introduction to Debt Securities

1. The principal
2. Interest payments
3. Par value
4. Coupon payments
5. Zero-coupon bonds
6. Defaults
7. Tax shield
8. Maturity
9. Seniority
10. Subordinated debt
11. Collateral
12. Secured debt
13. Debentures
14. Prime rate or LIBOR
15. Floating-rate
16. Standard & Poors scale
17. Moody’s scale
18. Investment-grade
19. High-yield bonds
20. Convertible bond

Valuing Debt Securities

1. Yield
2. Yield to maturity
3. Risk-free rate
4. Duration
5. Macauley’s duration
6. Modified duration