THE RANDOM CHARACTER OF INTEREST
Probus Publishing Co.
118 N. Clinton St., Suite 305
Chicago, IL 60606
Author: Joseph E. Murphy Jr.
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
At the beginning of this fascinating book, author Joseph Murphy presents the common wisdom regarding
· Interest rates are predictable
· Rates are periodic