Concepts of Mathematics (21-127 at CMU) is a course designed to introduce students to the world of abstract mathematics, guiding them from more calculation-based math (that one learns in high school) to higher mathematics, which focuses more on abstract thinking, problem solving, and writing "proofs." This transition tends to be a shock:…

By convention U.S. bond markets announce the actual price of a bond as the sum the quoted price plus accrued interest. The economic meaning of accrued interest and its role in this price announcing convention is generally misunderstood by accounting textbook authors who mistakenly provide accrued interest with both an economic and administrative…

This is a teaching note on a proposed approach that will correct a common flaw in the way the return-generating process within the APT framework is illustrated in textbooks. The problem can be resolved by dichotomizing the risk factors into two kinds. Based on this approach, the author eliminated the main source of confusion and developed an…