Capital Markets Math

Learn the essential math for global capital market players. Designed for working professionals on Wall Street, this practical workbook teaches you how to calculate the prices and returns on complex financial instruments. Depending on your knowledge, you can work through each bite-sized chapter or skip a topic, knowing you have a quick reference.

This workbook is shipped with a sheet of corrections to exercises and solutions. If you already have this workbook and need the corrections sheet, click here to download the sheet (free pdf).

The subtitle says it all: "Essential math for global capital market players." Above all, this is a practical workbook on calculating the prices and returns on complex financial instruments.

Designed for working professionals on Wall Street, Capital Markets Math is sprinkled with "fast facts" about the inner workings of the capital markets. Its lively and accessible style communicates math concepts accurately on the first reading, with plenty of exercises integrated into the text so you can test your understanding as you go. Depending on your personal knowledge base, you can work through each bite-sized chapter or skip a topic, knowing you have a quick reference.

Who needs this workbook?

• Professionals working on trading desks
• Students of money and capital markets investments, financial institutions, and corporate finance.
• Finance professors looking for an excellent math supplement to traditional finance text books.

Topics include: Structure and interest rate concepts; price-yield relationships, zero coupon; spot and forward rates; bootstrapping; the spot and par curves; price value of a basis point; yield value of a 32nd; duration; convexity; yield curve analysis; money market math; Libor rate and forward rate agreements; converting interest rates; swaps; futures and forwards; floating-rate securities; repurchase agreements and position trades; equity math; portfolio math; performance measurement; credit and other risks.

Appendices: Conventions used in the capital markets for settlement, day counts and bad dates; Newton-Raphson Search; Excel functions useful for capital markets math; regression analysis; the top 100+ formulas; a glossary; and solutions to all the exercises.

About the author: Dr. Norman Toy is one of Wall Street’s best-known and most beloved instructors. Dr. Toy has taught financial math, capital markets, corporate finance and financial analysis at investment banks for over 30 years. His students range from beginning analysts to executives and directors of major financial institutions.

A member of the faculty of Columbia Graduate School of Business since 1969, he teaches advanced corporate finance, debt markets and investment strategies in the school’s Executive MBA Program. His experience also includes management posts at Columbia University’s Health Sciences Division and its College of Physicians and Surgeons, and he was also a director and principal of the financial counseling firm of Brownson, Rehmus & Foxworth, Inc.

Dr. Norman Toy was educated at the University of Florida, where he earned a BA in mathematics, and the Harvard Business School, where he earned an MBA and Doctorate in managerial economics (management science and operations research. Dr. Toy’s research interests include capital markets, valuation and corporate finance and he is the author of articles on finance, marketing and statistics.

He also wrote for AMT:

• Introduction to Financial Math Using the HP17B/19B Calculators
• Introduction to Financial Math Using the HP 12C Calculator

by Dr. Norman Toy