In an efficient market, a security will always be priced lower than another if its characteristics are not as good. Read out more on how to compare two bonds.
while choosing a bond for the portfolio, one should look at the convexity adjustment
factor rather than just convexity measure.
the payoff of a long position in a call option is similar to payoff from a combination
of a long position in a put option and the underlying.
Currency in which interest rates are higher should depreciate against a currency with relatively higher interest rates. Understand the relationship between currency and interest rate
Capital budgeting is based on discounted cash flow (DCF) analysis, for which we
need to know the firm’s discount rate – the weighted average cost of capital (WACC).