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Fixed Income Securities

  • David Ruppert
  • David S. Matteson
Part of the Springer Texts in Statistics book series (STS)

Abstract

Corporations finance their operations by selling stock and bonds. Owning a share of stock means partial ownership of the company. Stockholders share in both the profits and losses of the company. Owning a bond is different. When you buy a bond you are loaning money to the corporation, though bonds, unlike loans, are tradeable. The corporation is obligated to pay back the principal and to pay interest as stipulated by the bond. The bond owner receives a fixed stream of income, unless the corporation defaults on the bond. For this reason, bonds are called “fixed income” securities.

Keywords

Interest Rate Cash Flow Term Structure Yield Curve Forward Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Bodie, Z., Kane, A., and Marcus, A. (1999) Investments, 4th ed., Irwin/ McGraw-Hill, Boston.Google Scholar
  2. Campbell, J. Y., Lo, A. W., and MacKinlay, A. C. (1997) Econometrics of Financial Markets, Princeton University Press, Princeton, NJ.Google Scholar
  3. Dowd, K. (1998) Beyond Value at Risk, Wiley, Chichester.Google Scholar
  4. James, J., and Webber, N. (2000) Interest Rate Modeling, Wiley, Chichester.Google Scholar
  5. Jarrow, R. (2002) Modeling Fixed-Income Securities and Interest Rate Options, 2nd ed., Stanford University Press, Stanford, CA.Google Scholar
  6. Sharpe, W., Alexander, G., and Bailey, J. (1999) Investments, 6th ed., Prentice-Hall, Englewood Cliffs, NJ.Google Scholar
  7. Tuckman, B. (2002) Fixed Income Securities, 2nd ed., Wiley, Hoboken, NJ.Google Scholar

Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • David Ruppert
    • 1
  • David S. Matteson
    • 2
  1. 1.Department of Statistical Science and School of ORIECornell UniversityIthacaUSA
  2. 2.Department of Statistical Science Department of Social StatisticsCornell UniversityIthacaUSA

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