Synopses & Reviews
The third edition of The Theory of Interest is significantly revised and expanded from previous editions. The text covers the basic mathematical theory of interest as traditionally developed. The book is a thorough treatment of the mathematical theory and practical applications of compound interest, or mathematics of finance. The pedagogical approach of the second edition has been retained in the third edition. The textbook narrative emphasizes both the importance of conceptual understanding and the ability to apply the techniques to practical problems. The third edition has considerable updates that make this book relevant to students in this course area.
Synopsis
The book is a thorough treatment of the mathematical theory and practical applications of compound interest, or mathematics of finance.
Description
Includes bibliographical references (p. 412-414) and index.
Table of Contents
Chapter 1: The Measurement of Interest
Chapter 2: Solution of Problems in Interest
Chapter 3: Basic Annuities
Chapter 4: More General Annuities
Chapter 5: Amortization Schedules and Sinking Funds
Chapter 6: Bond and Other Securities
Chapter 7: Yield Rates
Chapter 8: Practical applications
Chapter 9: More advanced financial analysis
Chapter 10: The term structure of interest rates
Chapter 11: Duration, convexity and immunization
Chapter 12: Stochastic approaches to interest
Chapter 13: Options and other derivatives
APPENDIXES
Appendix A: Table numbering the days of the year
Appendix B: Illustrative mortgage loan amortization schedule
Appendix C: Basic mathematical review
Appendix D: Statistical background
Appendix E: Iteration methods
Answers to the exercises
Glossary of notation
Index