Municipal Bond Math Basics

Read the learning objectives and topics covered in this MuniEdPro® course. Log into MuniEdPro®.

Target Audience: 

Broker-Dealers, Issuers and Municipal Advisors

Learning Objectives:

At the end of this course, learners will be able to:

  • Understand the process for structuring a fixed rate municipal bond transaction;
  • Identify assumptions required for structuring a fixed rate municipal bond transaction; and
  • Apply concepts related to structuring a fixed rate municipal bond transaction.

Course Topics:

1. Review Relevant MSRB Rules
a. MSRB Rule G-33 – Calculations

2. Overview Municipal Bond Financing Process
a. Basic Concepts
b. Gather Information
c. Sizing
d. Structuring
e. Work with the Underwriting Desk

3. Introduction to the Case Study
a. Financing Options
i. Callable cashflows
ii. Non-Callable Bonds

4. Gathering Assumptions
a. Questions to ask
b. Other Consideration
c. Assumptions for the underwriting desk
i. Yields
ii. Issuer yield curves

5. Structuring
a. Sources of Funds
b. Uses of Funds
c. Debt Service Schedule

6. Knowledge Check

7. Sizing
a. Interest rates and yields
b. Price and yields
c. Yields and debt service

8. Double Check Your Work
a. Bond transaction check list

9. Presenting Your Results

10. Assessment