hedqe — a finance lab

hedqe is an educational finance lab. You supply the inputs; it shows the formula it evaluated, the exhibit that explains it, and the number it produced. Six modules: • Time value of money — present and future value, annuities, amortization schedules, NPV and IRR. • Bonds — price and yield to maturity, Macaulay and modified duration, convexity, and the Taylor approximation of a price change. • Discounted cash flow — FCFF, WACC, the Gordon terminal value, enterprise value, and a sensitivity surface over the discount rate and the growth rate. • Portfolios — means and covariances, shrinkage, the global minimum variance and tangency portfolios, the efficient frontier, and CAPM beta. • Options — Black–Scholes–Merton, the Greeks, a Cox–Ross–Rubinstein lattice, implied volatility, payoff diagrams, forwards and covered interest parity. • Risk — value at risk and expected shortfall computed two…