Mastering Financial Mathematics in Microsoft Excel, 3rd Edition

Table of contents

1. Cover
2. Title page
3. Contents
4. Acknowledgements
5. About the author
6. Conventions
7. Overview
8. How to use this book
9. Warranty and disclaimer
10. 1 Introduction
    1. Overview
    2. Common Excel errors
    3. Systematic design method
    4. Auditing
    5. Summary
11. 2 Basic financial arithmetic
    1. Simple interest
    2. Compound interest
    3. Multiple payments
    4. Differing interest rates
    5. Nominal and effective rates
    6. Continuous discounting
    7. Conversions and comparisons
    8. Exercise
    9. Summary
12. 3 Cash flows
    1. Net present value
    2. Varying interest rates
    3. Internal rate of return
    4. XNPV and XIRR
    5. XNPV periodic example
    6. Modified internal rate of return
    7. Exercise
    8. Summary
13. 4 Bonds calculations
    1. Description
    2. Cash flows
    3. Zero coupons
    4. Yield
    5. Yield to call
    6. Price and yield relationship
    7. Yield curve pricing
    8. Other yield measures
    9. Yield measures
    10. Exercise
    11. Summary
14. 5 Bond risks
    1. Risks
    2. Duration
    3. Convexity
    4. Comparison
    5. Exercise
    6. Summary
15. 6 Floating rate securities
    1. Floating rates
    2. Characteristics of interest rate securities
    3. Yield evaluation
    4. Coupon stripping
    5. Exercise
    6. Summary
16. 7 Amortisation and depreciation
    1. Amortisation
    2. Full amortisation
    3. Delayed payments
    4. Sum of digits
    5. Straight line and declining balance depreciation
    6. UK declining balance method
    7. Double declining balance depreciation
    8. French depreciation
    9. Exercise
    10. Summary
17. 8 Swaps
    1. Definitions
    2. How swaps save money
    3. Advantages of swaps
    4. Terminating interest rate swaps
    5. Implicit credit risk
    6. Worked single currency swap
    7. Valuation
    8. Cross currency swap
    9. Worked example
    10. Swaptions
    11. Exercise
    12. Summary
18. 9 Forward interest rates
    1. Definitions
    2. Example forward rates
    3. Hedging principles
    4. Forward rate agreement
    5. Yield curves
    6. Exercise
    7. Summary
19. 10 Futures
    1. Futures market
    2. Terminology
    3. Benefits
    4. Clearinghouse operation
    5. Bond futures
    6. Hedging mechanisms
    7. Hedging example 1
    8. Hedging example 2
    9. Exercise
    10. Summary
20. 11 Foreign exchange
    1. Risk
    2. Spot rates
    3. Longer dates
    4. Equivalence
    5. Comparisons and arbitrage
    6. Exercise
    7. Summary
21. 12 Options
    1. Description
    2. Terminology
    3. Underlying asset
    4. Call options
    5. Put options
    6. Example
    7. Covered call
    8. Insurance using a stock and a long put
    9. Pricing models
    10. Black–Scholes model
    11. Call put parity
    12. Greeks
    13. Binomial models
    14. Comparison with Black–Scholes
    15. Exercise
    16. Summary
22. 13 Real options
    1. Real options
    2. Black–Scholes model
    3. Binomial model
    4. Exercise
    5. Summary
23. 14 Valuation
    1. Valuation methods
    2. Assets
    3. Market methods
    4. Multi-period dividend discount models
    5. Free cash flow valuation
    6. Adjusted present value
    7. Economic profit
    8. Exercise
    9. Summary
24. 15 Leasing
    1. Economics of leasing
    2. Interest rates
    3. Classification
    4. Amortisation
    5. Accounting
    6. Settlements
    7. Lessor evaluation
    8. Lessee evaluation
    9. Exercise
    10. Summary
25. 16 Basic statistics
    1. Methods
    2. Descriptive statistics
    3. Probability distributions
    4. Sampling/Central Limit Theorem
    5. Hypothesis testing
    6. Correlation and regression
    7. LINEST function
    8. Exercise
    9. Summary
26. Appendices
    1. 1 Exercise answers, functions list, software installation and licence
    2. 2 An introduction to Microsoft® Office
27. Index
28. Imprint page