We cover how to create and analyse a basic fixed income portfolio in Excel. Fixed income refers to investments that provide regular income, typically in the form of bonds or debt securities. Investors often like fixed income because of its predictable income, capital preservation and the ability to balance risk in a broader investment strategy. For simplicity, we’ve included three bonds: one government bond, one corporate bond and one municipal bond. The government bond in our example has the lowest yield as it is least risky while the corporate bond has the highest yield reflecting its elevated risk. By understanding key metrics like yield, maturity and duration, one can tailor the portfolio based on risk-reward preferences.
DISCLAIMER: Although I have taken great care to check all of the calculations, I am not a qualified accountant or financial advisor and you should not use this video to substitute financial advice. Make sure you talk to your own accountant before you use this calculator to make any financial decisions.
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[email protected]Overview: (0:00)
Intermediary Calculations: (1:02)
Final Calculations: (3:11)
Interpretation: (4:19)