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Python for Finance

You're reading from   Python for Finance Apply powerful finance models and quantitative analysis with Python

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Product type Paperback
Published in Jun 2017
Publisher
ISBN-13 9781787125698
Length 586 pages
Edition 2nd Edition
Languages
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Author (1):
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Yuxing Yan Yuxing Yan
Author Profile Icon Yuxing Yan
Yuxing Yan
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Table of Contents (17) Chapters Close

Preface 1. Python Basics FREE CHAPTER 2. Introduction to Python Modules 3. Time Value of Money 4. Sources of Data 5. Bond and Stock Valuation 6. Capital Asset Pricing Model 7. Multifactor Models and Performance Measures 8. Time-Series Analysis 9. Portfolio Theory 10. Options and Futures 11. Value at Risk 12. Monte Carlo Simulation 13. Credit Risk Analysis 14. Exotic Options 15. Volatility, Implied Volatility, ARCH, and GARCH Index

Summary

In this chapter, we cover various concepts related to interest rates, such as Annual Percentage Rate (APR), Effective Annual Rate (EAR), compounding frequency, how to convert one interest rate to another one with different compounding frequencies, and the term structure of interest rates. Then we discussed how to estimate the selling price of a regular bond and how to estimate the Yield to Maturity (YTM) and duration. To get a stock price, the so-called discount dividend model could be applied.

In the next chapter, we will discuss CAPM which is probably the most widely used model in assets pricing. After discussing its basic forms, we show how to download historical price data for a listed company and market index data. We illustrate how to estimate returns and run a linear regression to calculate the market risk for the stock.

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