<p>Things like the Macaulay Duration, Modified Duration, Bond Convexity, and Immunization. While many do cover 1 or 2 topics, almost none cover all of these topics. </p>
<p>Immunization refers to interest immunization, something that rarely covered.</p>
<p>It amazes me about all of these finance things, I am learning about which seem like they should be taught to most finance majors but aren’t.</p>
<p>Macaulay Convexity also is ignored by almost all business schools.</p>
<p>What major are you then. These are topics covered by MBA programs, but undergrad? These would have to be covered, i have seen schools with classes based specifically on fixed income securities covering the gammut of money market accounts, to vanilla rate swaps, duration and interest rate sensitivity, etc</p>
<p>I am a math major. But I have been reading up when business school requirements, or lack their of.</p>
<p>I doubt most MBA programs cover Duration, Convexity, or Interest Rate Immunzation. Maybe 1 of those topics but not all 3.</p>
<p>This material requires basic knowledge of derivatives, which is far to advance for most finance majors, who know little more than arthmitic.</p>
<p>depends which MBA program, the fixed income books i have read are included text books at schools such as wharton. They arent wholly mathematical, i would say they go into the material beyond the basic math, but not to the extent of some books. They explain the concepts of say the difference between macaulay, modified, effectice duration etc and the concepts behind the math, not necessarily making you do the calculations, but more as a concept to help in explaining the differences</p>
<p>why do you keep coming onto a business major message board complaining about what is taught to business school students?</p>
<p>majority of business majors will -never- even touch derivatives, they’re not common to people in business careers. not everyone in business is going to want to work in a quant heavy field, so give it a rest.</p>
<p>and there are specific MBA programs that are quite quant heavy, UChicago being one.</p>
<p>Your right, most business majors wont touch dervatives. Instead they use excell to calculate everything for them</p>
<p>^that’s what it was made for, to speeden and simplify the process. You definately seem mad about the fact that you are a math major.</p>
<p>VTBoy, what is the point of an assinine question like this? You’re the only one who bothers to respond to your own posts.</p>
<p>Most people don’t go to business schools to spend two years learning quantitative finance. Certainly not at the undergraduate level. There are specific graduate programs for that.</p>
<p>These are things used in everyday finance. The Wallstreet journal when it post bond information, it includes things like duration and convexity.</p>
<p>Mathematical Finance deels with much more mathematical finance. While the deriving these formulas requires calculus, their actual use and application requires only basic algebra.</p>
<p>It is true that most decent MBA programs do include a class on Fixed Income Markets or Investment Analysis, that cover this material. But almost no undergraduate program does.</p>
<p>“These are things used in everyday finance. The Wallstreet journal when it post bond information, it includes things like duration and convexity.”</p>
<p>Right, and every finance major/concentrator I know has had to learn to calculate duration and convexity.</p>
<p>Stop ■■■■■■■■ the boards! You don’t know what you’re talking about.</p>
<p>I never said every finance major has to use it. Those who are doing investment do have to use it.</p>
<p>
You may want to define what you mean by everyday finance. The majority of people in “finance” jobs probably work for a non financial services company in their finance department and I would guess maybe 1 or 2 of the hundreds of finance people in these companies ever touch highly quant finance concepts.</p>
<p>these are not “highly quant” finance concepts, nor are these concepts eluded by most people in any business. There are things called computers that magically pump out numbers for you due to the ease and ACCURACY (referring in broader terms to not only include advanced bond, but also derivatives, annuities, etc) It trully is as simple as using a damn computer, but obviously the math behind it allows for further understanding.</p>
<p>“I never said every finance major has to use it. Those who are doing investment do have to use it.”</p>
<p>And I never said otherwise. I repeat: just about every finance major is familiar with convexity and duration. We have all seen how it is calculated. We are all familiar with derivatives. You’re not talking about anything you’re typical business major doesn’t understand or grasp. You have a very base view on life and I hope, for your sake, that you grow out of it.</p>
<p>"There are things called computers that magically pump out numbers for you due to the ease and ACCURACY (referring in broader terms to not only include advanced bond, but also derivatives, annuities, etc) "</p>
<p>More to the point–time is precious in business. No one has time to sit there and calculate the value of a derivative by hand. It’s not that people can’t. It’s that there are better uses of one’s time and there are more complicated problems to solve (because, believe it or not, not every difficult problem involves derivatives and Taylor series). </p>
<p>Keep in mind, also, that statisticians and actuaries themselves don’t sit there and calculate things by hand. They use computers to calculate things for them just as any business person does.</p>