Customer Reviews

Money Market Bond Calculations

5 star:		(1)
4 star:		(2)
3 star:		(0)
2 star:		(0)
1 star:		(0)

 

 

I found this is the excellent book for anyone to understand bond yielding calculation. Whether you are experienced bond market player, or just beginner, you can always find something useful in the book. I would rate this book 4 stars.

I really like the way the fundamentals of valuation are derived from first principle's. It gives a very good presentation of where the assumptions are made. It is extremely important to understand the assumptions if you really want to know what the results do and do not tell you.

That said, there are several typo's and mathematical errors that really need to be corrected - such as the inverted numerator and denominator in the Newton-Raphson equation presented.

Most people take for granted the calculations used to generate a yield, duration and other fixed income statistic. These values are, more often than not, taken as being absolutes by the people who should most know that they are not always absolute and that yields in one market sector are not always comparable to yields in other market sectors. This book, a long anticipated follow-up to "Money Market Calculations" codifies in a succinct manner the basic conventions used to calculate bond numbers for various market sectors. While the book is certainly not a page-turner, it is a very important reference that should be found on every buy and sell-side trading desk.