Part I: Bond Evaluation and Selection.

1. Overview of the Financial System.

2. Bond Value and Return.

3. The Level and Structure of Interest Rates.

4. Bond Risk.

Part II: Debt Markets.

5. Corporate Debt Securities.

6. Government Securities.

7. Intermediary and Foreign Debt Securities.

8. Bond Investment Strategies.

Part III: Evaluation of Bonds with Embedded Options.

9. Valuation of Bonds with Embedded Options: Binomial Interest Rate Trees.

10. Estimating the Binomial Tree.

11. Securitization and Mortgage‑Backed Securities.

Part IV: Debt Derivatives: Futures, Options, and Swaps.

12. Interest Rate Futures: Fundamentals.

13. Interest Rate Futures: Applications and Pricing.

14. Interest Rate Options: Fundamentals.

15. Interest Rate Options: Hedging Applications and Pricing.

16. Interest Rate Swaps.

17. Non-Generic Interest Rate And Currency Swaps.

Supplemental Appendices:.

Appendix A: Use of Exponents and Logarithms.

Appendix B: Mathematical Statistical Concepts.

Appendix C: CFA Questions.

Answers to Select End-of-Chapter Problems.

Glossary of Terms.

Index