1 Pricing Concepts and the Term Structure of Interest Rates.
Present Value Formula.
Duration and Other Fixed-Income Pricing Concepts.
Appendix A: Calculation of U.S. Treasury Bond Yield Curve.
Appendix B: Eurodollar Futures Yields.
2 Fixed-Income Pricing Matrix and Decomposing Yields.
Determining the Discount Rate.
Credit Rating Categories and Determination.
Processes for Decomposing Bond Yields.
Normalized-Yield Pricing Matrix.
3 Public Corporate Bonds, Private-Placement Bonds, and Whole Commercial Mortgages.
Publicly Issued Corporate Bonds.
Public Corporate Bond Pricing.
Valuing a Private-Placement Bond.
Pricing Bonds that Have Sinking-Fund Payment Requirements.
Pricing Defaulted Bonds.
Whole Commercial Mortgage Loans.
Valuing a Whole Commercial Mortgage Loan.
Monetary Default Scenarios.
Appendix C: Bloomberg-Yield to Call Data.
Appendix D: Selected Portions of BondCalc (r) Brochures.
4 Mortgage-Backed and Asset-Backed Securities.
Evolution of the Mortgage-Backed Securities Market.
Collateralized Mortgage Obligations.
Bloomberg Median Prepayments.
Private-Placement Asset-Backed Securities.
5 Privately Held Equity.
Pricing Equity Issues.
Common Equity Pricing Models Used by Investment Analysts.
Price-Multiple Equity Pricing Models.
Discounted Cash Flow Approach Equity Pricing Model.
Basic Framework of Private-Equity Investing.
Accountant's Review of Private-Equity Valuations.
6 Public Equity Pricing.
"Fox Rocks" Valuation Illustration.
Discounted Cash Flow Model.
Appendix E: "Fox Rocks" Valuation Illustration.
Forward Rate Agreements.
Appendix F: Using Pricing Concepts of Fixed-Income Investments and Derivatives to Illustrate How to Hedge the Base Rate of Interest.
Appendix G: Fixed Income Option Strategies.
Surfside Condominium Partnership.