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math-finance-exercise

Toolbox

Availability:

  • Yield to Maturity (YTM)
  • Present Value (PV)
  • Future Value (FV)
  • Number of Periods (N)
  • Swap Rate (swap_rate)
  • Interest rate models: KWF branch

Methodologies

  • YTM and swap rate are determined using the Newton-Raphson method.
  • KWF branch returns the larger analytical solution.

Other Notebooks

Simple demo of concepts/models in Baxter & Rennie (1996). At present, the binomial approach to model discrete process is included.

TODO

  • Test cases
  • Demo for modelling continuous time processes
  • Interest rate models