Financial Markets and Institutions (2-downloads)

Z

Zero-coupon bonds. See discount bonds

(zero-coupon bonds)

Index

I-23

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Financial Markets and Institutions’s rich chapter features—

including The Practicing Manager, Cases, General Interest Boxes,

and Following the Financial News—enable students to both

understand and apply core concepts. This compelling pedagogy,

combined with the authors’ experience as practitioners, rounds out

the text’s applied managerial perspective.

The Practicing Manager

CHAPTER 3

Calculating Duration to Measure Interest-Rate Risk

CHAPTER 4

Profiting from Interest-Rate Forecasts

CHAPTER 5

Using the Term Structure to Forecast Interest Rates

CHAPTER 6

Practical Guide to Investing in the Stock Market

CHAPTER 10

Using a Fed Watcher

CHAPTER 15

Profiting from Foreign Exchange Forecasts

CHAPTER 16

Profiting from a Foreign Exchange Crisis

CHAPTER 17

Strategies for Managing Bank Capital

CHAPTER 19

Profiting from a New Financial Product: 

A Case Study of Treasury Strips

CHAPTER 21

Insurance Management

CHAPTER 23

Strategies for Managing Interest-Rate Risk

CHAPTER 24

Hedging Interest-Rate Risk with Forward Contracts

Hedging with Financial Futures

Hedging Foreign Exchange Risk with Forward 

and Futures Contracts

Hedging with Stock Index Futures

Hedging with Futures Options

Hedging with Interest-Rate Swaps

Cases

CHAPTER 4

Changes in the Interest Rate Due to Expected Inflation: 

The Fisher Effect

Changes in the Interest Rate Due to a Business Cycle Expansion

Explaining Low Japanese Interest Rates

Reading the Wall Street Journal: “Credit Markets” Column

CHAPTER 5

The Subprime Collapse and the Baa Treasury Spread

Effects of the Bush Tax Cut and Its Possible Repeal on Bond

Interest Rates

Interpreting Yield Curves, 1980–2010

CHAPTER 6

Should Foreign Exchange Rates Follow a Random Walk?

What Do the Black Monday Crash of 1987 and the Tech Crash 

of 2000 Tell Us About the Efficient Market Hypothesis?

CHAPTER 7

Financial Development and Economic Growth

Is China a Counter-Example to the Importance of Financial

Development?

CHAPTER 8

The Mother of All Financial Crises: The Great Depression

The 2007–2009 Financial Crisis

Financial Crises in Mexico, 1994–1995; East Asia, 1997–1998;

and Argentina, 2001–2002

CHAPTER 10

How the Federal Reserve’s Operating Procedures Limit

Fluctuations in the Federal Funds Rate

CHAPTER 11

Discounting the Price of Treasury Securities to Pay

the Interest

CHAPTER 12

The 2007–2009 Financial Crisis and the Bailout of Fannie Mae

and Freddie Mac

CHAPTER 13

The 2007–2009 Financial Crisis and the Stock Market

The September 11 Terrorist Attack, the Enron Scandal, 

and the Stock Market

CHAPTER 14

The Discount Point Decision

CHAPTER 15

Effect of Changes in Interest Rates on the Equilibrium 

Exchange Rate

Why Are Exchange Rates So Volatile?

The Dollar and Interest Rates

The Subprime Crisis and the Dollar

Reading the Wall Street Journal: The “Currency Trading”

Column

CHAPTER 16

The Foreign Exchange Crisis of September 1992

Recent Foreign Exchange Crises in Emerging Market 

Countries: Mexico 1994, East Asia 1997, Brazil 1999, 

and Argentina 2002

How Did China Accumulate Over $2 Trillion of International

Reserves?

CHAPTER 17

How a Capital Crunch Caused a Credit Crunch in 2008

CHAPTER 20

Calculating a Mutual Fund’s Net Asset Value

CHAPTER 24

Lessons from the Subprime Financial Crisis: When Are Financial

Derivatives Likely to Be a Worldwide Time Bomb?

General Interest Boxes

CHAPTER 2