Contiene: The function of financial markets. The flow-of-funds- system. Foundations for interest rates. Inflation and returns. The term structure of interest rates. Price volatility, coupon rate and maturity. The default-risk structure of interest rates. Derivative securities: interest-rate furures. Derivative securities: swaps. Derivative securities: options. Embedded options: call, martgage prepayment, and sinking fund. Controlling currency risk. The influence of taxes. The social allocation of capital.
