IntroductiontoFixedIncomeAnalytics_Relat.epub

Table of Contents Title Page Copyright Page Dedication Preface About the Authors CHAPTER 1 - Time Value of Money FUTURE VALUE OF A SINGLE CASH FLOW PRESENT VALUE OF A SINGLE CASH FLOW COMPOUNDING/DISCOUNTING WHEN INTEREST IS PAID MORE THAN ANNUALLY FUTURE AND PRESENT VALUES OF AN ORDINARY ANNUITY YIELD (INTERNAL RATE OF RETURN) CONCEPTS PRESENTED IN THIS CHAPTER (IN ORDER OF PRESENTATION) APPENDIX: COMPOUNDING AND DISCOUNTING IN CONTINUOUS TIME QUESTIONS CHAPTER 2 - Yield Curve Analysis A BOND IS A PACKAGE OF ZERO-COUPON INSTRUMENTS THEORETICAL SPOT RATES FORWARD RATES DYNAMICS OF THE YIELD CURVE CONCEPTS PRESENTED IN THIS CHAPTER (IN ORDER OF PRESENTATION) QUESTIONS CHAPTER 3 - Day Count Conventions and Accrued Interest DAY COUNT CONVENTIONS COMPUTING THE ACCRUED INTEREST CONCEPTS PRESENTED IN THIS CHAPTER (IN ORDER OF PRESENTATION) QUESTIONS CHAPTER 4 - Valuation of Option-Free Bonds GENERAL PRINCIPLES OF VALUATION DETERMINING A BOND’S VALUE THE PRICE/DISCOUNT RATE RELATIONSHIP TIME PATH OF BOND VALUING A ZERO-COUPON BOND VALUING A BOND BETWEEN COUPON PAYMENTS TRADITIONAL APPROACH TO VALUATION THE ARBITRAGE-FREE VALU......