Valuation of Fixed Income Securities and Derivatives
Publisher: Irwin Professional Publishing
Published: December 1, 1995
Language: eng
Format: Paperback
Number of pages: 260
ISBN-13: 9781883249069
Subjects: Investments & Securities - General; Investment & securities; Securities; Business / Economics / Finance; Business/Economics
First sentence: The objectives of this chapter are to: 1. explain what is meant by the cash flows of a financial asset; 2. discuss the process involved in valuing a fixed income security; 3. explain the situations in which determination of the cash flows of a fixed income security is complex; 4. review the provisions that allow the cash flows to be altered by either the issuer or the investor; 5. explain why a fixed income security should be viewed as a package of zero-coupon securities; 6. review risk measures associated with investing in fixed income securities; and, 7. explain the role of valuation in deriving risk measures.