Investment Mathematics for Finance and Treasury Professionals explains the principles and formulae used in the fixedincome cash markets. It presents an in-depth, yet practical look at the applications associated with these money and capital markets instruments. The book also covers calculations and applications in the foreign exchange and equities markets. The same in-depth coverage is applied to the various fixed- income and foreign exchange derivatives markets used as both speculative and hedging tools. Spanning the spectrum from price/yield changes to risk/return, and packed with numerous examples that illustrate key concepts, this exhaustive resource includes: Yield spread analysis-- methods of price/yield quotation, yield spreads by maturity, off-the-run vs. on-the-run Price/yield sensitivity-- hedge ratios, basis point value, dollar duration, convexity Term structure of interest rates different yield curve structures, zero coupon yield curve, Treasury trading STRIPS Foreignexchange-- crossrates, spot rates, forward points, covered interest arbitrage Options-- plain vanilla vs. exotic options, over-the-counter vs. exchange-traded options, understanding option valuation models, and option hedging and trading strategies Interest rate swaps, sw