The Incomplete Currency

List of Figures

1. Figure 1.1 Possible realisations of the random coupon depending on the possible values of the interest rate
2. Figure 1.2 Probability distribution of the values at the maturity of a floating rate bond issued by Bank A
3. Figure 1.3 Calculation of the fair price of a 6-month floating-rate bond issued by Bank A
4. Figure 1.4 Probability distribution of the values at maturity of a 2-year floating-rate bond issued by Bank A and calculation of the fair price
5. Figure 1.5 Calculation of the swap rate of a 2-year floating-rate bond issued by Bank A
6. Figure 1.6 Probability distribution of the values at maturity of a 2-year floating-rate bond issued by State D
7. Figure 1.7 Probability distribution of the values at maturity of a 2-year floating-rate bond issued by State GR
8. Figure 1.8 Probability distribution of the values at maturity of a 2-year fixed rate bond issued by State D and of a 2-year fixed rate bond issued by State GR
9. Figure 1.9 Probability distribution of the values at maturity of a 2-year fixed-rate bond issued by State D, of a 2-year fixed rate bond issued by State GR, and of a further 2-year fixed rate bond whose issuer is riskier than GR
10. Figure 1.10 Credit Default Swap contract (CDS)
11. Figure 1.11 The real interest rate
12. Figure 1.12 Inflation, nominal and real interest rates in Italy (1975–2014)
13. Figure 1.13 Inflation, nominal and real interest rates in the US (2000–2014)
14. Figure 1.14 Inflation, nominal and real interest rates in Germany (2000–2014)
15. Figure 1.15 Inflation, ...