This is a practical workbook on calculating the prices and returns on complex financial instruments. Designed for working professionals on Wall Street, this workbook is sprinkled with "fast facts" about the inner workings of the capital markets. Its lively and accessible style communicates math concepts accurately on the first reading, with plenty of exercises integrated into the text so you can test your understanding as you go. Depending on your personal knowledge base, you can work through each bite-sized chapter or skip a topic, knowing you have a quick reference.
Who needs this workbook?
Professionals working on trading desks and students of money and capital markets, investments, financial institutions, and corporate finance. Excellent math supplement to traditional finance text books.
Topics include:
Structure and interest rate concepts; price-yield relationships, zero coupon; spot and forward rates; bootstrapping; the spot and par curves; price value of a basis point; yield value of a 32nd; duration; convexity; yield curve analysis; money market math; Libor rate and forward rate agreements; converting interest rates; swaps; futures and forwards; floating-rate securities; repurchase agreements and position trades; equity math; portfolio math; performance measurement; credit and other risks.
Appendices:
Conventions used in the capital markets for settlement, day counts and bad dates; Newton-Raphson Search; Excel functions useful for capital markets math; regression analysis; the top 100+ formulas; a glossary; and solutions to all the exercises.