Explore the valuation of bonds with embedded options using advanced models like the Binomial Interest Rate Tree and Monte Carlo Simulation. Understand the role of option-adjusted spread (OAS) in pricing these complex securities.
Explore the intricacies of Monte Carlo Simulation in Option-Adjusted Spread (OAS) analysis, a critical aspect of bond pricing and fixed income securities.
Learn how to evaluate bond portfolio performance using historical data, hypothetical market scenarios, stress testing, scenario analysis, and Monte Carlo simulations. Understand the impact of interest rate changes, economic downturns, and credit events on fixed income investments.