Bond Math: The Theory Behind the Formulas (Wiley Finance)

About this book

A guide to the theory behind bond math formulasBond Math explores the ideas and assumptions behind commonly used statistics on risk and return for individual bonds and on fixed income portfolios. But this book is much more than a series of formulas and calculations; the emphasis is on how to think about and use bond math.Author Donald J. Smith a professor at Boston University and an experienced executive trainer covers in detail money market rates periodicity conversions bond yields to maturity and horizon yields the implied probability of default after-tax rates of return implied forward and spot rates and duration and convexity. These calculations are used on traditional fixed-rate and zero-coupon bonds as well as floating-rate notes inflation-indexed securities and interest rate swaps.Puts bond math in perspective through discussions of bond portfolios and investment strategies.Critiques the Bloomberg Yield Analysis (YA) pag