 Copyright 20112017. All Rights Reserved.
Twitter Updates
Error: Twitter did not respond. Please wait a few minutes and refresh this page.

Recent Posts
 My Letter to the Wall Street Journal
 Quarter the Cross: An Elegant Construction
 Quarter the Cross
 My FT Alphaville Commentary on Managing U.S. Treasury Debt
 NAMA in NOLA
 Taming Premium Bonds
 Fifth Annual Municipal Finance Conference
 Generating Sitemap Links with Excel
 Spaghetti Puzzle #1
 A Mathematician’s New Year’s Resolutions
Top Posts & Pages
 Fast Formulas #1: Average Life of Mortgage (as Scheduled)
 Fast Formulas #3: Pool Average Life with CPR Prepayments
 Puzzle #3: A Better Answer
 Fast Formulas #2: Average Life of Mortgage (Amortizing with Balloon)
 Puzzle #2: Weighted Average LTV
 Puzzle #1: Mortgage Average Life
 Fast Formulas #3: The Spreadsheet
 Extending the Weighted Average Maturity: Complete Nonsense?
 Fast Formulas #5: QuasiGeometric Series (The Other Trick)
 Puzzle #9: Island of Games
Recent Comments
Win Smith on Puzzle #7: The Mysterious… Elijah DePalma on Puzzle #7: The Mysterious… Rod on Puzzle #2: Weighted Average… My Letter to the Wal… on The National Debt is Closer th… Bob Rosinsky on Quarter the Cross Win Smith on Fast Formulas #1: Average Life… Win Smith on Quarter the Cross Bob Rosinsky on Quarter the Cross Mohammed Mustafa on Fast Formulas #1: Average Life… Win Smith on Fast Formulas #2: Average Life… Categories
Archives
Tag Cloud
 Average Life Formula
 Benjamin T. Solomon
 Big Data
 Bond Math
 Bond Math Puzzle
 Bond Puzzle
 Brandeis University
 Brookings Institution
 Calculus
 Calendar Puzzle
 Callable Premium Bonds
 Carmen Reinhart
 Christmas Trees
 Closed Formula
 Conferences
 Cool Graphs
 Derivative
 Excel Tables
 Fast Formulas
 Federal Reserve
 Finance Math Puzzle
 Financial Math
 Floating Rate Debt
 FRNs
 GARP
 Geometric Series
 Gravitation
 Halton Sequence
 Humor
 Innovations
 Interest Rate Risk
 Japan
 Johann Sebastian Bach
 Ken Rogoff
 Loan Average Life
 Marc Faber
 Math
 MATLAB
 Matt Henderson
 MortgageBacked Securities
 Municipal Bonds
 Municipal Finance Conference
 Optimization
 Physics
 Pi Day
 Precious Metals
 Prime Numbers
 Public Debt
 Pure Math
 Puzzle
 Puzzle #1
 Puzzle #2
 Puzzle #3
 QuasiGeometric Series
 Quasirandom
 Quotes
 QWAFAFEW
 Representing Numbers
 Seeking Alpha
 Space Travel
 Spreadsheet Tips
 Talks
 TED Talks
 The Bond Buyer
 Thomas Herndon
 Treasury Debt
 Treasury Floaters
 Tsunami
 U.S. Treasury
 U.S. Treasury Debt
 UC Denver
 volunteerAKITA
 Weighted Average Life
 Weighted Average LTV
 Weighted Average Maturity
Blogroll
Consultants
Father/Daughter Math Adventures
LinkedIn
My Company
Recommended Music
Tumblr
Meta
Tag Archives: Finance Math Puzzle
Puzzle #6: Treasury Debt
Last week was historic for U.S. Treasury debt. The yield on the 10year Treasury dipped below 1.44% to its lowest level ever, and the total debt held by the public* rose to $11,006,251,094,374.26. Some might argue that $11 trillion in public … Continue reading
Posted in Bonds, Economics, Fun, Math
Tagged Bond Math Puzzle, Finance Math Puzzle, Financial Math, Puzzle, Treasury Debt
8 Comments
Puzzle #4: Bond Pricing
Here’s another puzzle I’ve used to teach bond math. It’s not hard, but it requires some understanding of bond concepts that I will explain as we go (I beg the patience of bond mavens). Suppose you are the financial advisor … Continue reading
Posted in Bonds, Fun, Math, Puzzles
Tagged Bond Math Puzzle, Callable Premium Bonds, Finance Math Puzzle, Financial Math, Math, Price to Call, Price to Maturity, Puzzle, Puzzle #4, Yield to Maturity
12 Comments
Puzzle #3: A Better Answer
Puzzle #3 asked for the weighted average life (“WAL”) of the principal payments for a 30year mortgage that is cut short by a balloon payment at 15 years. The following information was provided: $100,000 Principal; 5% Interest Rate; $536.82 Level … Continue reading
Posted in Fun, Math, Puzzles
Tagged Average Life Formula, Cool Graphs, Finance Math Puzzle, Financial Math, Math, Puzzle, Puzzle #3, Weighted Average Life
5 Comments
Puzzle #3: Mortgage with Balloon
Puzzle #1 posed the question: given a $100,000 mortgage at 5% with monthly payments of $536.82 for 30 years, what is the average life of the principal payments? The puzzle was to be solved with just a few simple calculations. … Continue reading
Posted in Fun, Math, Puzzles
Tagged Average Life Formula, Bond Math Puzzle, Finance Math Puzzle, Financial Math, Math, Puzzle, Puzzle #3, Weighted Average Life
22 Comments
Puzzle #2: Answers to Followup Questions
Puzzle #2 asked how a $6 million mortgage pool with a weighted average LTV of 80% could have a total property value of $9 million when the average LTV implies a value of $7.5 million. Chun Lee NG gave a good general … Continue reading
Posted in Fun, Math, MortgageBacked Securities, Puzzles
Tagged Cool Graphs, Finance Math Puzzle, Financial Math, Puzzle, Puzzle #2, Weighted Average LTV
2 Comments
Puzzle #2: Followup Questions
Puzzle #2 asked how a $6 million mortgage pool with a weighted average LTV of 80% could have a total property value of $9 million when the average LTV implies a value of $7.5 million. Chun Lee NG provided a good explanation … Continue reading
Posted in Fun, Math, MortgageBacked Securities, Puzzles
Tagged Finance Math Puzzle, Financial Math, Puzzle, Puzzle #2, Weighted Average LTV
1 Comment
Puzzle #2: Weighted Average LTV
The loantovalue ratio (“LTV”) of a mortgage equals the loan amount divided by the property’s value. The LTV is a key indicator of mortgage quality. The lower the LTV, the more likely it is that the mortgage can be paid off … Continue reading
Posted in Fun, Math, MortgageBacked Securities, Puzzles
Tagged Finance Math Puzzle, Financial Math, Puzzle, Puzzle #2, Weighted Average LTV
12 Comments