Authors: James C. Van Horne
ISBN-13: 9780130180445, ISBN-10: 0130180440
Format: Paperback
Publisher: Prentice Hall
Date Published: June 2000
Edition: 6th Edition
This book explores the behavior of interest rates as they relate to changing market conditions, and examines how risk can be managed. It successfully bridges the gap between interest-rate theory and its application to fixed-income security portfolio management.
Coverage includes the function of financial markets, the flow-of-funds system, foundations for interest rates, inflation and returns, derivative securities, the influence of taxes, and the social l allocation of capital.
For those in the financial community, in business, and in government, who are concerned with investing in or issuing fixed-income securities.
New edition of a textbook on interest rates and financial risk management. Issues addressed include why interest rates and interest rate differentials exist, what causes them to change, and how risk can be shifted through hedging devices in the global financial arena. Intended for use in classes on money and capital markets, bond markets, investments, and financial institutions. Annotation c. by Book News, Inc., Portland, Or.
Preface | ||
Ch. 1 | The Function of Financial Markets | 1 |
Ch. 2 | The Flow-of-Funds System | 16 |
Ch. 3 | Foundations for Interest Rates | 30 |
Ch. 4 | Prices and Yields for Bonds and Money Market Instruments | 48 |
Ch. 5 | Inflation and Returns | 59 |
Ch. 6 | The Term Structure of Interest Rates | 77 |
Ch. 7 | Price Volatility, Coupon Rate, and Maturity | 95 |
Ch. 8 | Default and Liquidity Risk | 119 |
Ch. 9 | Derivative Securities: Interest-Rate Futures and Forward Contracts | 144 |
Ch. 10 | Derivative Securities: Options | 162 |
Ch. 11 | Derivative Securities: Interest-Rate and Credit Swaps | 191 |
Ch. 12 | Embedded Options and Option-Adjusted Spreads | 207 |
Ch. 13 | Mortgage Securities and Prepayment Risk | 222 |
Ch. 14 | Controlling Currency Risk | 239 |
Ch. 15 | The Influence of Taxes | 260 |
Ch. 16 | The Social Allocation of Capital | 274 |
Index | 291 |