Modern Portfolio Theory and Investment Analysis

The cited chapters of this book introduce interest theory not standard in actuarial texts. Of particular interest are the definitions spot and forward yields and the explanation of how they differ from yields to maturity. These concepts expand on traditional ideas and help explain movements in credit markets unexplained by traditional theory. An understanding of this more up-to-date theory puts the investor in a position to be able to deal more effectively with buyers and sellers in today's credit markets.