This is the first comprehensive textbook for students studying fixed–income securities, and is ideally suited to MBA, MSc and final year undergraduate students in Finance and related topics. The text offers an accessible and detailed account of interest rates and risk management in bond markets. It develops insights into different bond portfolio strategies, and illustrates how various types of derivative securities can be used to shift the risks associated with investing in fixed–income securities. It also provides extensive coverage on all sectors of the bond market, and the techniques for valuing bonds. In addition, explanation is given of state–of–the–art techniques for bond portfolio management, including: A description of numerous fixed–income assets and related securities, namely zero coupon government bonds, coupon bearing government bonds, corporate bonds, exchange–traded bond options, bonds with embedded options, floating rate notes, caps, floors and collars,...