Pricing of Municipal Securities

What this video covers

• How term bonds quote in dollar price (percentage of par) and serial bonds quote on a yield basis (yield to maturity), and why the exam loves swapping these pairings
• Converting a dollar price quote like 98 or 102 into actual flat dollar amounts per $1,000 of face value
• What a yield to maturity (YTM) basis quote means, and that "basis" is simply municipal market shorthand for YTM
• The direction of accrued interest flow: the buyer pays the seller at settlement, then recovers it from the next full coupon payment
• The 30/360 day count convention: every month is 30 days, February has 30 days, and a year has 360 days
• Counting accrued interest from and including the last coupon date up to but not including the settlement date
• Why municipal and corporate bonds use 30/360 while U.S. Treasury securities use actual/actual, and how the exam traps you on the distinction