"This book's primary objective is to educate aspiring finance professionals about mathematics and computation in the context of financial derivatives. The authors offer a balance of traditional coverage and technology to fill the void between highly mathematical books and broad finance books....

This article derives and tests a multiple-factor extension of the M-square model (see Fong and Vasicek [1984] and Fong and Fabozzi [1985]), termed as the M-vector model. Tests of the M-square model indicate that the model reduces the interest rate risk inherent in the traditional duration model...