Mathematical interest theory

Title page
Preface
0. An introduction to the Texas Instruments BA II Plus
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Choosing a calculator
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Font convention
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. BA II Plus basics
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 0
1. The growth of money
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. What is interest ?
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Accumulation and amount functions
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Simple interest / Linear accumulation functions
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Compound interest (The usual case!)
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Interest in advance / The effective discount rate
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Discount functions / The time value of money
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Simple discount
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Compound discount
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Nominal rates of interest and discount
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. A friendly competition \\eightpoint(Constant force of interest)
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Force of interest
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Note for those who skipped Sections (1.11) and (1.12)
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Quoted rates for Treasury bills
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Inflation
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Choice of quotation base for interest rates
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 1
2. Equations of value and yield rates
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Equations of value for investments involving a single deposit made under compound interest
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Equations of value for investments with multiple contributions
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Investment return
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Reinvestment considerations
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Dollar-weighted yield rates
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Fund performance
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 2
3. Annuities (annuities certain)
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities-immediate
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities-due
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Perpetuities
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Deferred annuities and values on any date
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Outstanding loan balances
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Nonlevel annuities
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities with payments in geometric progression
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities with payments in arithmetic progression
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Yield rate examples involving annuities
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuity symbols for nonintegral terms
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities governed by general accumulation functions
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. The investment year method
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 3
4. Annuities with different payment and conversion periods
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Level annuities with payments less frequent than each interest period
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Level annuities with payments more frequent than each interest period
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities with payments less frequent than each interest period and payments in arithmetic progression
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Annuities with payments more frequent than each interest period and payments in arithmetic progression
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Continuously paying annuities
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. A yield rate example
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 4
5. Loan repayment
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Amortized loans and amortization schedules
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. The Sinking Fund method
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Amortized loans with other repayment patterns
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Yield rate examples and replacement of capital
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 5
6. Bonds
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Bond alphabet soup and the basic price formula
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. The premium-discount formula
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Other pricing formulas for bonds
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Bond amortization schedules
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Valuing a bond after its date of issue
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Selling a bond after its date of issue
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Yield rate examples
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Callable bonds
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Floating-rate bonds
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. The BA II Plus calculator Bond worksheet
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 6
7. Stocks and financial markets
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Common and preferred stock
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Brokerage accounts
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Going long: buying stock with borrowed money
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Selling short: selling borrowed stocks
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 7
8. Arbitrage, term structure of interest rates, and derivatives
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Arbitrage
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. The term structure of interest rates
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Loans with floating rate of interest
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Interest rate swaps: the basics
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Formulas for interest rate swaps
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Market value of an interest rate swap
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. More swaps
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Forward contracts
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Commodity futures held until delivery
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Offsetting positions and liquidity of futures contracts
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Price discovery and more kinds of futures
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Options
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Using replicating portfolios to price options
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Using weighted averages to price options
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 8
9. Interest rate sensitivity
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Overview
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Duration
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Convexity
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Using duration to approximate price
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Using duration and convexity to approximate price
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Immunization
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Other types of duration
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 9
10. Determinants of interest rates
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Introduction
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Supply and demand of loans
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Default risk
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Inflation risk
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Banks and other financial intermediaries in the retail sector
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Savings and lending interest rates in the retail sector
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Bonds issued by governments and corporations
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. The role of central banks
	\\ifnum2>\\c@secnumdepth\\else\\csname thesection\\endcsname. Problems, Chapter 10
APPENDICES
A. Some useful formulas
B. Answers to end of chapter problems
Bibliography
Index
About the Authors