Fixed-Income Securities: Dynamic Methods For Interest Rate Risk Pricing And Hedging

Fixed-Income Securities provides a survey of modern methods for pricing and hedging fixed-income securities in the presence of interest rate risk. Modern theory of finance provides a wealth of new approaches to the important question of interest rate risk management, and this book brings them together, in a comprehensive and thorough treatment of the subject. Structured in an accessible manner, the authors focus on pricing and hedging certain cash flows before moving on to consider pricing and hedging uncertain cash flows. In addition to theoretical explanations, the authors provide numerous real-world examples and applications throughout.