Book 5

Seems like it's been a while since I last wrote. Counter to the whole point of the keeping the blog, I've been very erratic in my study habits. I went one weekend where I flew through an entire book, then another week with barely any progress. The new conclusion is that I need to hurry and finish so I can start doing sample exams. I want about a month and a half to do practice exams and sample problems. Since this is a comprehensive test, it's better now to really focus in on the weaknesses and test taking abilities in this last month, rather than hoping to try to retain everything that's been covered over the last 3 months.

Right now I'm working on debt securities valuation. YTM is tripping me up, although I understand that there is a inverse relationship with the bond value, I keep thinking of YTM as a yield (which it is) but I keep associating higher yield with more value (well, yeah it's more value, because it's sold at a deeper discount). I keep confusing it with higher coupon payments (something that's appealing) but really I have to keep those separate in my mind. Higher yield to maturity, higher discount rate, and higher market yield all drive down the value of a bond.

I will try and get back on schedule. So many "exceptional" weekends and weeks (especially with a semi-new job) have definitely put a big hole into the study schedule but now that there's some regularity, I think I'm back.