Bond Math: The Theory Behind the Formulas (Wiley Finance)

📘 Book Details

• Author: Donald J. Smith

• Publisher: John Wiley & Sons Inc

• Language: English

• Edition: 1st Edition

• ISBN: 9781576603062

• Pages: 288

• Cover: Hardcover

• Release Date: 22-06-2011

• Dimensions: 9.2 x 6.4 x 1.0 inches

📝 About The Book

Bond Math by Donald J. Smith is a comprehensive guide to understanding the intricacies of bond mathematics and its applications in fixed-income investing. Designed for both newcomers and experienced professionals, this book goes beyond a series of formulas and calculations, offering insightful perspectives on how to think about and use bond math effectively in various investment scenarios.

Covering a wide range of topics such as money market rates, bond yields, duration, convexity, and implied forward rates, the author provides a deep dive into essential bond-related calculations. The book examines both traditional bonds as well as more complex instruments like floating-rate notes, inflation-indexed securities, and interest rate swaps. Smith, a seasoned professor and expert in the field, draws from over 25 years of experience to present bond math in a clear, logical, and engaging way.

Additionally, Bond Math critiques commonly used bond analysis tools such as the Bloomberg Yield Analysis page, shedding light on which figures are reliable, which are misleading, and which should be disregarded altogether. The book not only provides the theory behind bond math but also presents practical advice and strategies for using these calculations in real-world investment decisions. With chapters dedicated to bond portfolios and investment strategies, it ensures that readers understand how bond math fits into larger financial planning and decision-making.

Whether you're a finance professional looking to refine your understanding or someone new to the bond market, Bond Math is an invaluable resource for mastering bond-related calculations and successfully navigating the world of fixed-income investing.