Welcome! We're delighted to have an opportunity to tell you about our new book, Mathematical Interest Theory by James W. Daniel and Leslie Jane Federer Vaaler.

Mathematical Interest Theory provides a classic treatment of interest theory—how money grows with interest—and applies the tools of interest theory to the analysis of yield rates, bonds, stocks, and modern financial instruments such as options and other derivatives. In November 2006 we were informed by the Casualty Actuarial Society and the Society of Actuaries that Mathematical Interest Theory had been approved as a text for SoA/CAS Exam FM/2. Because the Exam Committees apparently insist on at least an 18 month lead time, Mathematical Interest Theory first appeared on the official syllabus for the May 2008 exam---see the Exam FM link at http://www.soa.org/education/course-catalog/edu-catalog-detail.aspx ; we understand that it is already being used as the textbook at the Universities of Connecticut, Michigan, and---of course---Texas. We've prepared our own guidance on using our book to cover the content of Exam FM/2.

For more information on the content, take a look at our table of contents; to see if your favorite topic is included, see our index. For more of our general thoughts on the book, see our preface. And for an independent review of our book, search MAA Reviews for "interest".

Here are some special features of Mathematical Interest Theory:

• Teaches and illustrates with over 240 carefully worked examples
• Includes optional instruction and examples for the Texas Instruments BA II Plus and BA II Plus Professional financial calculators
• Introduces in detail such modern financial concepts as arbitrage, derivatives, options, futures, and swaps, and treats option pricing without requiring probability
• Contains over 430 problems and an appendix with answers to all the numerical problems
• Has more than 30 writing exercises
• Treats yield rates early and often