Contemporary Finance

List of Figures

Figure 1.1  Who’s borrowing in the United States, 1945–2023

Figure 1.2  Who’s lending in the United States, 1945–2023

Figure 1.3  OTC derivatives markets 1998–2022

Figure 2.1  Comparing arithmetic and logarithmic returns

Figure 2.2  US Treasury yield curve

Figure 2.3  Spot and forward curves in the example

Figure 2.4  Price and total return of S&P 500 1971–2024

Figure 2.5  Nominal and real return of T-bills 1971–2024

Figure 2.6  Nominal and real return of S&P 500 1971–2024

Figure 2.7  Cumulative total and excess return of S&P 500 1971–2024

Figure 2.8  Comparison of more and less volatile stocks

Figure 2.9  Impact of correlation on joint return distributions

Figure 3.1   US and Turkish dollar-denominated sovereign yield curves

Figure 3.2  US credit spreads 1996–2024

Figure 3.3  European credit spreads 1999–2024

Figure 3.4  US 2- and 10-year nominal rates 1976–2024

Figure 3.5  US, German, and Japanese 10-year nominal rates 1976–2023

Figure 3.6  US inflation 1960–2023

Figure 3.7  Estimated US real interest rates 1961–2023

Figure 3.8  US GDP growth rate and its volatility 1947–2023

Figure 3.9  US labor productivity 1947–2023

Figure 3.10   World GDP per capita 1820–2018

Figure 3.11    Life expectancy 1770–2021

Figure 3.12   US debt-to-GDP ratio by sector 1946–2022

Figure 4.1  Sample paths of a geometric Brownian motion

Figure 4.2  Volatility of crude oil prices 1987–2024

Figure 4.3  Correlation of stock returns and rates 1962–2024

Figure 4.4  Effect of the decay factor ...