First published in 1988 and revised in 1996, this new edition is updated to reflect the latest changes in the debt-instrument market. As with previous editions, the third edition provides a solid introduction to the entire bond business, including broad trends in fixed income markets as well as current trends in individual markets. It offers vital information on the Federal Reserve System, the mathematics of finance, and a glossary of essential terminology.How the Bond Market Works delves into how a bond differs from a share of stock, how various kinds of bonds are brought to market, the relationship between bond prices and interest rates in general, the different kinds of international bonds, and much more.New to the third edition are chapters devoted to electronic trading, the most current information on new bond instruments and trends, and portfolio management for the individual investor.Sometimes referred to as a bond-seminar-in-a-book, this third edition gives investors everything they need to know about the bond market.