Young Wise and WealthyYoung Wise and Wealthy

Technicals · 04

The instruments underneath all of it.

Capital structure, bonds and yields, and options payoffs. The parts of the market that the accounting and valuation work assumes you already understand.

  1. 01Equity and capital structureOrder every claim on a company and say what changes when leverage goes up.9
  2. 02Bonds and yieldsPrice a bond by hand, invert it to a yield, and estimate a price move from duration.12
  3. 03Derivatives basicsDraw any option payoff at expiry and say where the break-even sits.10

Being writtenRates and the curve, Market structure.

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