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V. 9:14 (575-576): THE RANDOM CHARACTER OF INTEREST RATES

V. 9:14 (575-576): THE RANDOM CHARACTER OF INTEREST RATES

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THE RANDOM CHARACTER OF INTEREST RATES

Probus Publishing Co.

118 N. Clinton St., Suite 305

Chicago, IL 60606

(800) 426-1520,

(312) 346-7985

Author: Joseph E. Murphy Jr.

Price: $37.50

323 pages, 1990

by Mark Harris

Interest rates are at the heart of many of our theories about how tradeables should be priced. This is obvious in the case of bonds, but they also enter into the carry charges on futures, are an element in the Black-Scholes formulation of options pricing and, presumably, tell us something about inflation and deflation expectations.

At the beginning of this fascinating book, author Joseph Murphy presents the common wisdom regarding interest rates:

Interest rates are predictable

Rates are periodic
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