CFA Level 2 | Fixed Income: Fair Value of Risky Bond (Zero Interest Rate Volatility)

CFA Level 2 Topic: Fixed Income Learning Module: Credit Analysis Models When valuing a risky bond (e.g. corporate bond), we will have to calculate: the value of the bond assuming no default (VND) the credit valuation adjustment (CVA). Throughout the whole video, calculations involve: Expected exposure Recovery amount Loss given default (LGD) Probability of default (POD) Expected loss (EL) PV of expected loss (PVoEL) Visit www.noesis.edu.sg/programme/cfa for more information on CFA Program prep courses offered by Noesis.