Encyclopedia - Bond Valuation: Encyclopedia Ii - Bond Valuation - Bond Pricing
Bond valuation - Relative price approach. Here the bond will be priced relative to a benchmark, usually a government security. The disc...   » Read the article

Encyclopedia - Bond Valuation: Encyclopedia Ii - Bond Valuation - General Relationships
Bond valuation - The present value relationship. The fair price of a straight bond (a bond with no embedded option) is determined by di...   » Read the article

Encyclopedia - Equity Derivative: Encyclopedia Ii - Equity Derivative - Convertible Bonds
Convertible bonds are a combination of bonds and equity. Convertible bonds are bonds with a maturity date and coupon, with a call option ...   » Read the article

Encyclopedia - Interest Rate Cap And Floor: Encyclopedia Ii - Interest Rate Cap And Floor - Valuation Of Interest Rate Caps
Interest rate cap and floor - Black. The simplest and most common valuation of interest rate caplets is via the Black model. Under this...   » Read the article

Encyclopedia - Equity Derivative: Encyclopedia Ii - Equity Derivative - What Are Equity Derivatives?
A derivative is a financial tool whose value is derived from the value of an underlying asset. A derivative's value is principally determ...   » Read the article

Encyclopedia - Equity Derivative: Encyclopedia Ii - Equity Derivative - Options - A Versatile Tool
Options are commonly regarded as being used for equities. However, they can be used for a wide range of assets eg. stocks, arbitrage, deb...   » Read the article

Encyclopedia - List Of Finance Topics: Encyclopedia Ii - List Of Finance Topics - Valuation
List of finance topics - Discounted cash flow valuation. Cash flow Cash flow from operating activities Operating cash flow Time val...   » Read the article

Encyclopedia - Interest Rate Cap And Floor: Encyclopedia Ii - Interest Rate Cap And Floor - Interest Rate Cap
An interest rate cap is a derivative in which the buyer receives money at the end of each period in which an interest rate exceeds the ag...   » Read the article

Encyclopedia - List Of Finance Topics: Encyclopedia Ii - List Of Finance Topics - Financial Markets
List of finance topics - Market and instruments. Capital markets Securities Financial markets Primary market Initial public offering A...   » Read the article

Encyclopedia - Bond Duration: Encyclopedia Ii - Bond Duration - Embedded Options And Effective Duration
For bonds that have embedded options, Macauley duration and modified duration will not correctly approximate the price move for a change ...   » Read the article

Encyclopedia - Bond Duration: Encyclopedia Ii - Bond Duration - Macaulay Duration
Macaulay duration is the weighted average maturity of a bond where the weights are the relative discounted cash flows in each period. ...   » Read the article

Encyclopedia - Bond Duration: Encyclopedia Ii - Bond Duration - Modified Duration
Modified duration is calculated as follows: where r is the yield to maturity of the bond, and n is the number of cashflows per year. ....   » Read the article

Encyclopedia - List Of Finance Topics: Encyclopedia Ii - List Of Finance Topics - Financial Regulation
List of finance topics - Designations and accreditation. Certified Financial Planner CFA Institute Chartered Financial Analyst Charte...   » Read the article

Encyclopedia - List Of Finance Topics: Encyclopedia Ii - List Of Finance Topics - Financial Regulation
List of finance topics - Designations and accreditation. Certified Financial Planner Chartered Financial Analyst CFA Institute Char...   » Read the article

Encyclopedia - List Of Finance Topics: Encyclopedia Ii - List Of Finance Topics - Mathematics And Finance
List of finance topics - Time value of money. Present value Future value Discounting Net present value Internal rate of return Annuity...   » Read the article

Encyclopedia - Rational Pricing: Encyclopedia Ii - Rational Pricing - Fixed Income Securities
Fixed income securities have known cash flows (by definition). Further, each cash flow of a fixed income security can readily be matched ...   » Read the article

Encyclopedia - Interest Rate Derivative: Encyclopedia Ii - Interest Rate Derivative - The Mathematics Of Bonds
Interest rate derivative - Simple and Compound Interest and their Usage. In the language of finance, you have assumed that the 10% per...   » Read the article

Encyclopedia - Stock Option: Encyclopedia Ii - Stock Option - Valuation
Suppose I own an option to buy a share in XYZ Corp. for $100 in one months' time. If the actual stock price at the time is $105 then I wo...   » Read the article

Encyclopedia - Stock Option: Encyclopedia Ii - Stock Option - Trading
The most common way to trade stock options is trading standardized options contracts that are listed by various futures and options excha...   » Read the article

Encyclopedia - Stock Option: Encyclopedia Ii - Stock Option - Employee Stock Options
Main article: Employee stock option Stock options for the company's own stock are often offered to upper-level employees as part of the e...   » Read the article

Encyclopedia - Equity Derivative: Encyclopedia Ii - Equity Derivative - Warrants
Warrants are part of the derivatives family as their value depends on the value of an underlying security. As such, the warrant investor ...   » Read the article

Encyclopedia - Turquoise: Encyclopedia Ii - Turquoise - Imitations
The Egyptians were apparently the first to produce an artificial imitation of turquoise, in the glazed earthenware product faience. Later...   » Read the article

Encyclopedia - The South Sea Company: Encyclopedia Ii - The South Sea Company - Initial Stages
The company, formed in 1711 by Robert Harley, was granted exclusive trading rights in Spanish South America. The trading rights pre-suppo...   » Read the article

Encyclopedia - The South Sea Company: Encyclopedia Ii - The South Sea Company - Buying The Public Debt
In 1719 the company proposed a scheme by which it would take on the entire remaining national debt of Britain (£30,981,712), offering it...   » Read the article

Encyclopedia - Interest Rate Swap: Encyclopedia Ii - Interest Rate Swap - Valuation And Pricing
The present value of a plain vanilla (i.e. straightforward) swap can easily be computed using standard methods of determining the present...   » Read the article

Encyclopedia - Bond: Encyclopedia - Bond
Securities Bond Commercial paper Hybrid security Stock Warrant Markets Bond market Stock market Stock exchange Stocks Share Stock Warrant...   » Read the article

Dictionary - Assets: Insurance Glossary Dictionary Iv - Assets
Definition and meaning of ASSETS :   ASSETS: Property owned, in this case by an insurance company, including stocks, bonds and ...   » Read the article

Encyclopedia - Rational Pricing: Encyclopedia Ii - Rational Pricing - Options
As above, where the value of an asset in the future is known (or expected), this value can be used to determine the asset's rational pric...   » Read the article

Encyclopedia - Bond: Encyclopedia Ii - Bond - Trading And Valuing Bonds
The interest rate that the issuer of a bond must pay is influenced by a variety of factors, such as current market interest rates, the le...   » Read the article

Encyclopedia - Rational Pricing: Encyclopedia Ii - Rational Pricing - Futures
In a futures contract, for no arbitrage to be possible, the price paid on delivery (the forward price) must be the same as the cost (incl...   » Read the article

Encyclopedia - Rational Pricing: Encyclopedia Ii - Rational Pricing - Swaps
Rational pricing underpins the logic of swap valuation. Here, two counterparties "swap" obligations, effectively exchanging cash flow str...   » Read the article

Encyclopedia - Rational Pricing: Encyclopedia Ii - Rational Pricing - Pricing Shares
The Arbitrage pricing theory (APT), a general theory of asset pricing, has become influential in the pricing of shares. APT holds that th...   » Read the article

Encyclopedia - Bond: Encyclopedia Ii - Bond - Investing In Bonds
Bonds are bought and traded mostly by institutions like pension funds, insurance companies and banks. Most individuals who want to own bo...   » Read the article

Article - Insurance Sitemap I - F
This is a sitemap for Insurance - F . Click on a link and you will find multiple definitions and articles related to the word. The sit...   » Read the article

Article - Insurance Sitemap I - M
This is a sitemap for Insurance - M . Click on a link and you will find multiple definitions and articles related to the word. The sit...   » Read the article

Article - Insurance Sitemap I - A-z
This is a sitemap for Insurance - A-Z . Click on a link and you will find multiple definitions and articles related to the word. The s...   » Read the article