TBA , Mannheim - Online

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Event Date Wed Sep 14 CEST (in 10 months)
In your timezone (EST): Wed Sep 14 3:00am - Wed Sep 14 11:00am
Location TBA
Mannheim - Online
Region EMEA

From simple interest rates to the valuation of an interest rate swap.
Even if arithmetic tasks in treasury are largely performed by systems, a basic understanding of the mathematics behind them is essential for a more in-depth understanding. In addition, the seminar teaches the different types of interest (simple, exponential, mixed interest) and provides the tools to recalculate the interest calculations of the banks according to different interest conventions (such as Actual / 360 or 30/360). An example for the valuation of bonds and an interest rate swap is calculated on this basis.

Main topics

Simple interest and compound interest calculation:
• What is the difference between simple interest and exponential interest (compound interest) and where are these used?
• How do you calculate the final capital, the interest rate, the initial capital or the term from the other information?

Day counting methods:
• How do you calculate interest with 30/360 or Act / 360 etc.?
• How do you use the ISDA formula for the daily calculation?
• Which conventions are common in different markets?

Forward rates:
• What is a forward rate and where is it used?
• How can you derive and calculate a forward interest rate?

Assessment of future cash flows:
• How can one determine the present value of future cash flows?
• How is the present value of a fixed or floating rate bond calculated?

• Valuation of an interest rate swap:
• What is an interest rate swap and where is it used?
• How can the present value of an interest rate swap be calculated using Excel?

Group of participants:
Employees and managers who work in risk management as well as corporate account managers from banks who want to get to know their customers' day-to-day business from their perspective

The participants learn the different types of interest (simple, exponential, mixed), can recalculate different interest rate conventions (Actual / 360, 30/360) and evaluate bonds and interest rate swaps.


2022 Speakers

Bernhard Kastner
Manager, Schwabe, Ley & Greiner

Peter Schmid
Manager, Schwabe, Ley & Greiner