DocumentCode
1832644
Title
Analogy in contemporary engineering economy: Mortgage loan and bond pricing
Author
Lam, K.P.
Author_Institution
Dept. of Syst. Eng. & Eng. Manage., Chinese Univ. of Hong Kong, Shatin, China
fYear
2010
fDate
7-10 Dec. 2010
Firstpage
1982
Lastpage
1984
Abstract
Two topics of social relevance, mortgage loan and bond pricing, have not received sufficient attention in engineering economy, though they are of considerable importance in real estate and corporate finance. In this paper we discuss some fundamentals for both topics using the basic TVM (Time-Value-Money) and NPV (Net-Present-Value) principles, and derive the closed form equations and iterative forms and their equivalence. Drawing upon an analogy between the computations for mortgage and bond, we apply cognitive modeling for problem solving using a financial calculator as an effective engineering tool.
Keywords
pricing; bond pricing; cognitive modeling; contemporary engineering economy; corporate finance; mortgage loan; net-present-value principles; real estate; time-value-money principles; Barium; Companies; Economic indicators; Equations; Loans and mortgages; Mathematical model; Pricing;
fLanguage
English
Publisher
ieee
Conference_Titel
Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on
Conference_Location
Macao
ISSN
2157-3611
Print_ISBN
978-1-4244-8501-7
Electronic_ISBN
2157-3611
Type
conf
DOI
10.1109/IEEM.2010.5674644
Filename
5674644
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