Mastering Financial Calculations: A Step-by-Step Guide to the Mathematics of Financial Market Instruments (Financial Times Series) [Paperback]

Robert Steiner (Author)

Book Description

ISBN-10: 027362587X | ISBN-13: 978-0273625872 | Publication Date: December 25, 1997 | Edition: 1

"Mastering Financial Calculations" starts by introducing the fundamentals of financial market arithmetic, including the core concepts of discounting, net present value, effective yields and cashflow analysis, and then shows you step-by-step how to master the essential calculations and financial techniques for using the full range of products in the markets. The links between the different instruments and the resulting arbitrage opportunities are fully explored, together with the practical difficulties. Making use of many worked examples and practical exercises, the book goes on to explain concepts such as forward pricing, duration analysis, the different approaches to bond yield calculations, zero-coupon and yield curve analysis, swap valuation and option pricing in a clear and accessible way, at each stage illustrating their application using a programmable calculator. Whether you are a trader, fund manager, corporate treasurer, programmer, accountant, risk manager or market student, this book will give you the ability to manipulate and apply the relevant techniques with speed and confidence in your marketplace. The book includes essential course material and practice exercises for ACI qualifications.

Editorial Reviews

From the Back Cover

Success in today’s sophisticated financial markets increasingly depends on a firm understanding of key financial concepts and mathematical techniques. This book explains them in a clear and comprehensive way for a wide audience.

 

Mastering Financial Calculations starts by introducing the fundamentals of financial market arithmetic, including the core concepts of discounting, net present value, effective yields and cashflow analysis and then shows you step-by-step how to master the essential calculations and financial techniques for using the full range of products in the markets. The links between the different instruments and the resulting arbitrage opportunities are fully explored, together with the practical difficulties.

 

Making use of many worked examples and practical exercises, the book goes on to explain concepts such as forward pricing, duration analysis, the different approaches to bond yield calculations, zero-coupon and yield curve analysis, swap valuation and option pricing in a clear and accessible way, at each stage illustrating their application using a programmable calculator.

 

Whether you are a trader, fund manager, corporate treasurer, programmer, accountant, risk manager or market student, this book will give you the ability to manipulate and apply the relevant techniques with speed and confidence in your marketplace.

About the Author

Robert Steiner is Managing Director of Markets International, Ltd., an independent company specializing in international financial training, and in consulting on foreign exchange with finance directors and treasurers of international companies. He is also author of Mastering Repo Markets.

Product Details

• Paperback: 416 pages
• Publisher: FT Press; 1 edition (December 25, 1997)
• Language: English
• ISBN-10: 027362587X
• ISBN-13: 978-0273625872
• Product Dimensions: 9.3 x 6.4 x 0.9 inches
• Shipping Weight: 1.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #425,251 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

23 of 24 people found the following review helpful:

5.0 out of 5 stars Concise, informative & well communicated to intended readers, December 29, 2003

By 

Let it Be "Alan" (Singapore) - See all my reviews

This review is from: Mastering Financial Calculations: A Step-by-Step Guide to the Mathematics of Financial Market Instruments (Financial Times Series) (Paperback)

I am using the most recent edition (1999, ISBN027362587X) of this excellent book published by FT Prentice Hall.

This book is a concise and informative guide to the concepts and mechanics (maths) and application of financial instruments.

The author has managed to cover the wide area of financial instruments and business maths in the most concise and informative manner possible.

The added bonus of this book is that it could have been "unintentionally" written as a companion with HP financial calculator-the HP12c and the HP19BII.

New & existing owners of the HP12c, would find this book to be an excellent and indispensible guide and practice workbook.

Working through the examples in the book with my HP12c has helped me familarise with the RPN mode/logic of performing financial maths at the same time as I apply my understanding of the underlying concepts to the exercise questions and illustrative examples.

I am impressed that the author had even included detailed key strokes of both the HP 12c and 19BII calculators with each illustrated examples and answers to practice questions as well! Although there is afew minor errors but the overall effort is great efforts and attention to details.

This book is really true to its name, I would certainly recommend Mr Steiner's excellent work and effort to anyone who needs a refresher or an introductory course into financial instruments for both work and study.

Judging by the author's excellent effort, it would be difficult for the author himself to improve on his own work unless there are major new developments in the subject matter or if the author wishes to cover more complex and specialist areas.

A five star+ effort in my humble opinion.

20 of 21 people found the following review helpful:

5.0 out of 5 stars Brilliant. A Definitive Work, September 8, 2000

By 

Michael E Silberger (New York, NY) - See all my reviews

This review is from: Mastering Financial Calculations: A Step-by-Step Guide to the Mathematics of Financial Market Instruments (Financial Times Series) (Paperback)

This is by far the most comprehensive, easy to understand book regarding financial math I have come across in over 15 years as a Wall Street IT professional. From calculating simple interest to pricing interest rate and currency swaps to option payout diagrams this book has it all. All calculations are clearly laid out with real examples, sample questions and hints. A must have for novices and pros.

15 of 16 people found the following review helpful:

5.0 out of 5 stars One of the best I've encountered, October 22, 2000

By A Customer

This review is from: Mastering Financial Calculations: A Step-by-Step Guide to the Mathematics of Financial Market Instruments (Financial Times Series) (Paperback)

As a liberal arts major who was not a math pro but had an interest in learning the tools of finance, this book was a dream come true. It explains every calculation simply and without any technical (and incomprehensible) jargon found in many textbooks. It includes examples, hints, and a glossary of important financial concepts. If you are willing to learn, then this book is for you. A good reference tool for even pros. A bit expensive but NOT sorry to have bought it.