Interest and Derivatives Markets by Marcel B. Finan
Interest and Derivatives Markets - Table of Contents
PART I: INTEREST THEORY & LOAN METHODS
- 1. The Basics of Interest Theory
- 2. The Basics of Annuity Theory
- 3. Rate of Return of an Investment
- 4. Loan Repayment Methods and Amortization
PART II: BONDS, SENSITIVITY & DERIVATIVES
- 5. Bonds and Related Topics
- 6. Stocks and Money Market Instruments
- 7. Measures of Interest Rate Sensitivity (Duration & Convexity)
- 8. An Introduction to the Mathematics of Financial Derivatives
What You Will Learn in Interest and Derivatives Markets
Interest and Derivatives Markets by Marcel B. Finan is a mathematically rigorous, self-study textbook designed to prepare students for professional actuarial examinations (such as the SOA Exam FM) and quantitative finance careers. This thorough volume guides readers through the accumulation of interest, annuity valuation, internal rate of return, amortization and sinking fund loan repayments, bond yields, stock pricing, interest rate sensitivity metrics like duration and convexity, and introductory financial derivatives math with exceptional pedagogical clarity and analytical structure.
Designed for undergraduate mathematics majors, actuarial candidates, financial analysts, and quantitative researchers, this foundational text bridges pure financial interest theory and scalable market modeling. Finan details step-by-step cash flow valuations, immunization techniques, duration calculations, and call/put option payoffs without sacrificing logical precision. Whether you are preparing for FM exams, building fixed-income investment models, or analyzing yield curves, this book offers an indispensable roadmap.
Recognized globally for its clear layout and problem-solving focus, it stands as one of the best financial mathematics books for actuarial self-study. By balancing classical compound interest concepts with modern derivatives market mechanics, it serves as an essential tool for mastering interest theory and financial derivatives with confidence.
Book Details & Specifications
Title:
Interest and Derivatives Markets by Marcel B. Finan
Publisher:
Arkansas Tech University
Year:
2013
Pages:
747
Type:
PDF
Language:
English
ISBN-10 #:
0256091501
ISBN-13 #:
978-0256091502
License:
University Resource (Free for Personal Use)
Amazon:
Amazon
About the Author: Marcel Boulos Finan
The author Marcel Boulos Finan
is a Professor of Mathematics at Arkansas Tech University, widely celebrated across the global actuarial science community for his extensive series of open-access study guides and textbooks tailored for Society of Actuaries (SOA) and Casualty Actuarial Society (CAS) examinations. He has authored foundational texts spanning financial mathematics, probability theory, life contingencies, and numerical analysis.
Authored to provide an accessible yet mathematically complete treatment of financial engineering foundations, Interest and Derivatives Markets reflects Finan's commitment to high-quality, open educational resources. His systematic problem-solving approach, clear formula derivations, and focus on practical exam-style scenarios make this volume a classic reference for actuarial interest theory trusted by students and self-directed learners worldwide.
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Financial Mathematics