I've recently wanted to learn how to invest in fixed income and was wondering what models, etc. are used to evaluate these types of securities. For example, in valuing equities from a bottoms-up perspective, we use eitheror and I was wondering if the same ideas are used for fixed income or if it's different.
Even though I'm not sure I want to invest in fixed income professionally, I want to learn how to do it as a hobby, which is why I'm asking this. How would I go about, for example, evaluating whether a speculative/junk bond from a company like Nokia would be profitable if held to maturity? Additionally, would I even need to worry about an increase in interest rates if I'm holding securities till maturity and am basically looking to make sure that the yield I'm getting from interest and principle paydowns is secure, or do changes in interest rates still need to be monitored for an objective like this?