Series 7 Exam Prep 'Ford Bond, not James Bond'. SIE Exam & Series 6 Exam & Series 65 Exam too!

Corporate Debt Securities.
Lecture 2 of 2
00:00 Capitalization of a Corporation lecture 2 of 2
0:52 Nominal yield does not change
Nominal
Coupon
Stated
Most bonds today are fully registered
7:40 Yield to price or price to yield
What it pays you ÷ what it costs you = current yield
Bond seesaw and using it
When quoting premium bond YTC
When quoting discount bond YTM
Types of risk, interest and callable
24:00 Current yield Very Testable
Annual interest ÷ current market price = current yield
29:22 Yield to price or yield to call
35:53 Yield to worst either YTM (basis) or YTC
40:24 Bond ratings Quality
Bonds under BBB are less than investment grade quality
43:14 Unsecured Debt
Debenture Full faith and credit
Sub Debentures
Convertible Debentures
Guaranteed bond
Income or adjustment bond trades flat
Zero coupon no call risk, no reinvestment risk. Set sum of money at future date. Good for college funding
53:41 Types of secured bonds
Mortgage bonds, real property
Collateral trust bonds, marketable securities placed in escrow. Equipment trust certificates, major movable equipment
58:36 Priority in liquidation Very Testable
Secured bonds
Unsecured bonds
Preferred stock
Common stock (junior stock)
Know that theoretical liquidation value is book value
1:00:31 Convertible bonds Very Testable
Parity of bond = CMP of stock X conversion ratio
Parity of stock = CMP of bond ÷ Conversion ratio
1:02:49 Calculating parity of bond
1:06:10 Calculating Parity of stock
1:06:59 taxation of corporate debt
Interest
Capital gains
1:10:40 conclusion

[alicialopez]

Thank you Dean! These lectures are beyond helpful! I appreciate your knowledge and your willingness to share.

[ohhweezy]

Thanks for being a great teacher Dean!

[shanebright]

I take the 7 in a month. I have been studying and watching your videos. All I can say is, Thank you. Your help preparing is priceless.

[cabragooncabulous]

I have to say. Ive been studying for my SIE. And these videos are invaluable. Thank you.

[RobertSmith-nngu]

Useful content. Easy to understand. Dean is a good storyteller too.

[totallytrading]

Love all the content you make. Thanks you so much for making our lives easy with your lectures.

[xyyang]

There was a conversion ratio question on the 65 I took. Thank you Dean to emphasis it in the lecture.

[kevinperrault]

Thank you for the information. The Parity questions are now much easier to solve.

[traefauntleroy]

Dean,
Awesome Lecture. Thank you. 👊🏾👊🏾👊🏾👊🏾

[atboptimistic-]

I love your humor as well as the simplicity of your videos 1😄

[darlag]

Another great video. You break it down nicely.

[alishadhs]

THANK YOU so much for these videos. I take my test tomorrow, 6/11 and your video's have helped me tremendously.

[hannie]

Could you please share the link to Lecture 1 of 2 for Debt Securities for the SIE exam? Thank you so much

[brunonaranjo]

Thank you sir! I've been using the Pass Perf program and this video right here is 1000% easier and simpler to understand. I love it! thank you so much!!

[sangeetaheines]

As usual excellent video..I have to Pass Series7. Your videos are super helpful. Want to buy Question Bank.

[sgegutz]

@Series7Guru Hey Dean, do you have a helpful memory aid for remembering the difference between serial bonds vs series bonds? I can never make it stick. I keep mixing these two up. With your help I passed the SIE! On to the 7. Thanks for any help you can provide.

[JaydonBurrell-togl]

Hi Dean, me again. I'd love to ask your opinion. I am only using your lectures a long with capital advantage lessons and the Kaplan QBank. I am not using a textbook, do you think it will be sufficient or should I fork out for a textbook. Writing on 6 April and the textbooks are expensive. I do have a finance background so the concepts of options etc aren't difficult, it's more the rules and regulations and nitty gritty that I'm experiencing for the first time. Thanks again!

[hannie]

At minute marker 1 hour 1 minute, do you anticipate needing to calculate parity or conversion ratio on the SIE or is that more specific to the Series 7? Thank you so much for all of these helpful videos. They are a godsend as I make my way through this Kaplan material for the SIE!

[lorisanchez]

Hi Dean! Thanks for the content! Is there a video lecture on US Treasury Debt Securities?

[Leshic]

1:05:43 you talk about the Common Stock trading 2 "points" below parity.
When I think of Basis Points, isn't it 0.01%?
But you're giving "points" the value of $1.00 for a stock price.
Can you clear this up?

(I'm frequently confused by the industry using "points" or "basis points" to describe price or %, instead of saying price or %.)