Financial Instruments gives a broad and in-depth overview of many aspects of the most commonly used financial instruments. The book is a helpful guide for accountants, controllers, risk management staff and financial technology consultants. Financial Instruments is not a difficult science book but instead easy to read and based on daily practice.
The book discusses, amongst others, in a clear way the determination of discount factors, the concept of dual discounting and the process of adjusting discount factors in foreign currencies. By explaining all relevant concepts of valuation, the book reveals the reason why it is so common that valuations from different institutions differ from one another. The book also describes how financial instruments are priced and also explains in this regard how CVA is determined. For each individual financial instrument, the book gives an elaborated example which shows how the instrument should be valued. The chapters about IFRS 9 are also very useful because of their practical angle.
The book comes with a downloadable excel worksheet that you can use to practice with a number of the discussed valuation-related techniques.