The Theory Behind the Formulas

Bond Math is a quick and easy resource that puts the
intricacies of bond calculations into a clear and logical order.
This simple, readable guide provides a handy reference, teaching
the reader how to think about the essentials of bond math. Much
more than just a book of formulas, the emphasis is on how to think
about bonds and the associated math, with plenty of examples,
anecdotes, and thought-provoking insights that sometimes run
counter to conventional wisdom. This updated second edition
includes popular Bloomberg pages used in fixed-income analysis,
including the Yield and Spread Analysis page, plus a companion
website complete with an Online Workbook of multiple choice
questions and answers and spreadsheet exercises. Detailed coverage
of key calculations, including thorough explanations, provide
practical guidance to working bond professionals.

The bond market is the largest and most liquid in the world,
encompassing everything from Treasuries and investment grade
corporate paper to municipals and junk bonds, trading over $900
billion daily in the U.S. alone. Bond Math is a guide to the
inevitable calculations involved in managing bonds, with expert
insight on the portfolios and investment strategies that puts the
math in perspective. Clear and concise without sacrificing detail,
this book helps readers to:

• Delineate the characteristics of different types of debt
  securities


• Calculate implied forward and spot rates and discount
  factors


• Work with rates of return, yield statistics, and interest rate
  swaps


• Understand duration-based risk measures, and more

Memorizing formulas is one thing, but really learning how to
mentally approach the math behind bonds is something else entirely.
This approach places calculations in context, and enables easier
transition from theory to application. For the bond professional
seeking a quick math reference, Bond Math provides that and
so much more.