Mathematics of Cash Flows

<p>This book is a short monograph on using mathematics in a basic financial model: cash flows. With cash flows this book covers financial literacy topics including time value of money interest rates NPV and IRR calculation of rate of return and utility theory. The rest of the book covers financial engineering topics including Asset-Back Securities Mortgage-Back Securities NPV and IRR for uncertain cash flows valuation of financial instruments based on cash flows hedging strategies for derivatives pricing and optimization involving cash flows. Primarily suitable for self-learners especially those with a strong quantitative background to get into the finance field this book includes all suggested solutions to problems mainly arising from the practical area of finance. </p>