chapter 10

Interest Rate Derivative Instruments

Learning Objectives

After reading this chapter, you will be able to understand

  • usage of different interest rate derivative products
  • yield curve analysis
  • the term structure of interest rates
  • speculation in interest rate derivatives
  • the choice of delivery bonds
  • the application of interest rate derivatives for risk coverage
Chapter Outline

10.1 Introduction

10.2 Interest Rate Derivative Products

10.3 Interest Rate Categories

10.4 Zero-Coupon Yield Curve

10.5 Term Structure of Interest Rates

10.6 Trading in Forward Rate Agreements

10.7 Speculation in Interest Rate Derivatives

10.8 Hedging Using Interest Rate Derivatives

10.9 Cheapest-to-Deliver Bonds

10.10 Trading Strategies Using Interest Rate Futures ...

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