The function of financial markets -- The flow-of-Funds system -- Foundations for interest rates -- Prices and yields for bonds and money market instruments -- Inflation and returns -- The term structure of interest rated -- Price volatility, coupon rate, and maturity -- The default-risk structure of interest rates -- Derivative securities: interest-rate futures -- Derivative securities: options -- Derivative securities: swaps -- Embedded options and option -adjusted spreads -- Mortage securities and prepayment risk -- Controlling currency risk -- The influences of taxes -- The social allocation of capital

1. Interest rates
2. Flow of funds
3. Capital market