Plan of the Book

The goal of this book is to provide readers with a working knowledge of bond markets, interest rates, present and future value calculations, and interest rate derivatives. Chapter 1 discusses the macroeconomic determinants of interest rates and the effect of the Federal Reserve upon interest rates. Chapter 2 describes the major issuers of debt instruments. Financial intermediaries are covered in chapter 3. Present value calculations and the term structure of interest rates are presented in chapters 4 through 9. Chapter 10 covers default risk. Options, mortgages, futures, and other derivatives are described in chapters 11 through 16. Chapter 17 analyzes the impact of international exchange rates on bond investments.