Interest Rates Citibank

Table of Contents......Page 3
Course Objectives......Page 9
The Workbook......Page 10
 Basic Interest-Rate Products......Page 15
Deposits......Page 16
Loans......Page 19
Non-Bank Products......Page 21
Government Securities......Page 22
Non-Government Securities......Page 24
Summary......Page 27
Progress Check 1......Page 29
Future Value......Page 37
Future Value After One Interest-Rate Period......Page 38
Future Value After Multiple Fixed-Interest-Rate Periods......Page 39
Future Value After Multiple Variable-Interest-Rate Periods......Page 41
Summary......Page 43
Progress Check 2.1......Page 45
Present Value......Page 47
One Interest-Rate Period......Page 48
Multiple Fixed-Interest-Rate Periods......Page 49
Multiple Variable-Interest-Rate Periods......Page 50
Present Value of Payment Streams with Multiple Fixed Payments......Page 52
Present Value of Multiple Payment Streams at Variable Discount Rates......Page 54
Collapsing the Floating-Rate Cash Flow......Page 62
Discounting an Annuity......Page 64
Progress Check 2.2......Page 67
Internal Rate of Return......Page 71
Summary......Page 76
Progress Check 2.3......Page 79
Unit Objectives......Page 83
Prices of Fixed-Rate Securities......Page 84
Investor Strategies......Page 85
Quoting Conventions......Page 88
Annual Bond Equivalent Yield......Page 89
Semi-Annual Bond Equivalent Yield......Page 90
Other Bond Equivalent Yields......Page 91
Money Market Yields......Page 92
Discount Rate......Page 96
Summary......Page 99
Progress Check 3......Page 103
Before You Begin This Unit......Page 109
Compounding and Decompounding Bond Equivalent Yields......Page 110
Compounding Bond Equivalent Yields......Page 111
Decompounding Bond Equivalent Yields......Page 113
Progress Check 4.1......Page 119
Converting Between Day-Count Conventions: MMY To BEY......Page 121
Converting Discount Rates to Interest Rates......Page 124
Basic Conversion Guidelines......Page 129
Other Conversions......Page 130
Summary......Page 132
Progress Check 4.2......Page 135
Unit Objectives......Page 139
History......Page 140
Reducing the Company's Rate Risk......Page 144
Reducing the Contract's Settlement Risk......Page 145
Decreasing the Contract's Credit Risk......Page 146
Summary......Page 151
Progress Check 5......Page 153
Size and Scope of the FRA Market......Page 161
Borrowers......Page 164
Attractive Returns or Costs......Page 165
Asset / Liability Mismatches......Page 166
Hedging Other Derivative Products......Page 170
Summary......Page 172
Progress Check 6......Page 175
Uses for Repurchase Agreements......Page 181
Financing Debt Portfolios......Page 182
Making Two-Way Markets......Page 184
Term REPOs......Page 186
Summary......Page 187
Progress Check 7......Page 189
Unit Objectives......Page 193
Credit Risk......Page 194
Visibility Risk......Page 195
Credit Risk......Page 196
Visibility Risk......Page 197
Documentation Risk......Page 198
Summary......Page 199
Progress Check 8......Page 201
Glossary (English)......Page 203
Glossary (Spanish)......Page 207
Index......Page 212