Synopsis
Anyone running a business, overseeing cash flow, or managing a specific portfolio needs to understand swaps--not necessarily to deal, but to talk to those who do, and to evaluate whether and how swaps can help the bottom line. This book quickly equips executives, managers, and directors to use swaps effectively., This text provides a working knowledge of all aspects of option-adjusted analysis, presenting it as a valuable tool for analyzing and comparing bonds with different structures. It shows the limitations of traditional yield-based risk-and-return analysis, and how to determine option-free price and yield. Also included are modelling and valuing early redemption provisions as embedded options on a bond; and advice on how to measure a bond's price sensitivity to changes in interest rates.
