This book is an analysis of all possible interest rates. Dual expressions are used to solve long-standing puzzles, eliminate anomalies and draw conclusions about best practice and sound policy advice in areas of economics and finance. Topics include retail and corporate finance, capital budgeting and investment appraisal, bond risk management.
An on-line model demonstrating ideas from the book is available in the Wolfram Demonstrations Project (WDP) by searching ‘multiple interest rate analysis’ in the WDP search engine. A ‘computable document’ containing the model and the model’s code are also available as free downloads from the site.
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1. Multiple Interest Rate Analysis: What it is and Why it is Important 2. Motivation 3. Four Key Results of Multiple Interest Rate Analysis 4. Is APR a Robust Measure of the Cost of Consumer Credit? 5. Multiple Interest Rate Analysis Demonstrates Why the IRR Pitfalls are Irrelevant and Provides a Better Reason to Prefer NPV as an Investment Criterion 6. An Accurate Formula is Derived for the Impact of a Shift in Yield on the Price of a Bond 7. Multiple Interest Rate Analysis Sheds Light on the Reswitching Phenomenon 8. A Summing Up
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Mike Osborne is a Lecturer in Finance at the University of Sussex, UK. Dr Osborne’s career has spanned both academia and industry with previous positions including: Director of the Master Card Academy, delivering payments education to banking clients in Europe; Vice President at Gulf International Bank, managing HR projects and policy; Director of Education at ACI – the Financial Markets Association – managing ACI’s global education and examination program for financial market professionals; Head of Banking Studies at the Bahrain Institute of Banking & Finance; and Economic Advisor in HM Treasury. Dr Osborne has a BA in Economics from Newcastle University, a Postgraduate Certificate in Education from the University of Oxford, an MA in the Economics of Money and Finance from the University of Sheffield, an MPhil in International Monetary Economics from the University of Liverpool, and a Ph D in Financial Economics from Middlesex University.