Time Varying Interest Rates and Yield Curves

This section explains five topics that are important to businesses:  (1) The fixed income market, (2) The varying interest rates and yield curves, (3) A model for stochastic interest rates, (4) The risk of rolling over, and (5) Implications of the yield curve. Why are these topics important to the business owner or executive? These topics are used when the returns on investments are sought by investors. There is some class-specific information from the professor who created this document; you can ignore it.