GIVE NOW about ocw help & faqs contact us
18.642 | Fall 2024 | Undergraduate

# Topics in Mathematics with Applications in Finance

This segment by Vasily Strela provides an explanation of interest rates, bonds, and their fundamental role in finance. It covers key concepts such as compound interest, discounting future cash flows, zero-coupon and coupon bonds, and the inverse relationship between bond prices and yields. The discussion also explores yield curves, their historical shapes, and how they can signal economic recessions, emphasizing the importance of understanding bond price sensitivities through measures like duration and convexity for effective fixed-income investing.

Viewing videos requires an internet connection

- Download video
- Download transcript

## Course Info

##### Instructors

- Dr. Peter Kempthorne
- Dr. Vasily Strela
- Dr. Jake Xia

##### Departments

- Mathematics

##### As Taught In

Fall 2024

##### Level

Undergraduate

##### Topics

- Business
  - Finance
- Mathematics
  - Applied Mathematics
  - Probability and Statistics

##### Learning Resource Types

notes Lecture Notes
theaters Lecture Videos
assignment Problem Sets
assignment Activity Assignments
group_work Projects
Readings

Browse Resources

# You are leaving MIT OpenCourseWare

Please be advised that external sites may have terms and conditions, including license rights, that differ from ours. MIT OCW is not responsible for any content on third party sites, nor does a link suggest an endorsement of those sites and/or their content.