Publisher: Adkins, Matchet and Toy, 1998, 179 pages

ISBN: 1-891112-51-1

**Contents**

**Introduction to Capital Markets**

Learn how money works for borrowers and lenders; meet the players; get an overview of the institutions and instruments that make money available to the institutions that use it**Financial Math**

Learn key skills for calculating money's value over time through real-life examples and ste-by-step explanations keyed to the HP calculator

Learn how to set up a problem so that the solutions develops naturally**Appendix: Basic Algebra**

Been a long time since you factored an expression? Brush up your skill or use this section as a reference as you work the financial math problems**Appendix: HP Calculator**

Get oriented with this handy guide to the calculator and how to use it for financial math.

**Features**

- Capital Markets overview puts financial math in context
- "Due Diligence" tests check your understanding
- Warning signs alert you to common pitfalls
- Tips show you the best practices in the markets
- Sprinkled with Wall Street lingo and stories
- Filled with real-life exercises that reinforce each concept
- "The Underwriting" is a final case study that brings all the concepts together in a practical application
- Frequent diagrams illustrate key concepts

**Design**

- Learn by doing
- A workbook, not a textbook
- Builds the foundation you need to be comfortable with financial math calculations
- Step-by-step learning. Each section contains:
**Concept**

Overview with examples**The Pitch**

Introductory questiions**Complexities**

Overview with examples**The Mandate**

Advanced questions**Hit the Phones**

Summarizes the section

- The capital markets
- Time value of money
- Compound interest
- Zero coupon bonds
- Capital markets players
- Annuities and perpetuities
- Coupon bonds
- Recent developments in the capital markets
- Irregular cashflows
- Modified IRR
- Multiple IRRs
- All-in-Costs and Yield-to-Maturity
- Interest rates
- Simple interest
- Nominal interest
- Comparing bonds
- Holding period yield
- Constantly growing cash flows

- The Underwriting
**Appendices and answers**- Appendix 1: Using your calculator
- Appendix 2: Algebra brushup
- Answers

This often overlooked book is an excellent introduction to the investment and finance worlds as well as a very practical book on handling the MBA type calculations you often find yourself needing (just kidding).

Buy a HP calculator (obviously) and this book, if you envision a career in the investment world. Recommended reading, even if you don't.

Also part of *Financial Business Box*.

## Comments

There are currently no comments

## New Comment