Having returned to teaching the basics of pricing fixed-income securities after several years, the author recalls the difficulty students have in understanding the total return provided by fixed-income securities that are purchased at either a discount or premium from face value. This teaching note attempts to clarify the concept by suggesting…

Most high school students are at an age when they are learning to drive. They often want to offer input when their parents decide on what vehicle to purchase, so the activity described in this article should have direct personal interest for them. It allows students to use technology and mathematics to determine the environmental impacts of…

A heuristic approach to explaining of the Black-Scholes option pricing model in undergraduate classes is described. The approach draws upon the method of protocol analysis to encourage students to "think aloud" so that their mental models can be surfaced. It also relies upon extensive visualizations to communicate relationships that are…

Large-scale testing programs involving classification decisions typically have multiple forms available and conduct equating to ensure cut-score comparability across forms. A test developer might be interested in the extent to which an examinee who happens to take a particular form would have a consistent classification decision if he or she had…